<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-1-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-1_2x-new.png 2x" alt="1" width="37" />SpaceX Makes History (Again)
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />SpaceX made history with a jaw-dropping rocket launch that crossed international borders. On Tuesday, the company's Falcon 9 rocket blasted off from Cape Canaveral, Florida, and stuck the landing in the Bahamas.
This groundbreaking mission saw the Falcon 9&rsquo;s first-stage booster touch down on the &ldquo;Just Read the Instructions&rdquo; droneship, which was strategically positioned off the Bahamian coast.

<img class="aligncenter" src="https://images.ctfassets.net/vha3zb1lo47k/2Z8TLgzzBk9OAl6YhGWUJK/023ca26c120ab0143967b36216869219/SpaceX.png" alt="spacex" width="450px" />

Courtesy: SpaceX SpaceX successfully lands a Falcon 9 rocket on a droneship stationed off the Bahamas
The landing, occurring just under eight minutes after liftoff, marks the first time a rocket has taken off from one nation, reached space and landed in another country.
Why the Bahamas? The Bahamas location is about practicality. Calmer waters near Exuma Island offer more reliable landing conditions compared to the choppy open Atlantic. Plus, the area&rsquo;s milder winter weather means fewer launch delays.
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> Tuesday&rsquo;s mission was a success on two fronts. It not only validated SpaceX&rsquo;s innovative new landing strategy but also successfully deployed 23 Starlink satellites into orbit, further bolstering the company&rsquo;s expanding internet constellation.
And launching from Florida&rsquo;s Space Coast, SpaceX is now able to optimize its trajectories, allowing for larger satellite payloads per mission. This capability also paves the way for groundbreaking human spaceflight opportunities, such as the upcoming Fram2 mission (reportedly happening sometime this spring) which aims to explore Earth from polar orbit.
<img class="aligncenter" src="https://images.ctfassets.net/vha3zb1lo47k/5tTQusxKgO8NehR4GC0mCD/6331f6cb55dae113efb01bad699c21cb/Screenshot_2025-02-20_at_11.59.02_AM.png" alt="SpaceX Tweet" width="540px" />
With its most recent achievement, SpaceX continues to push the boundaries of what&rsquo;s possible in spaceflight, making the extraordinary seem almost routine.
As the company eyes even more ambitious goals, including trips to the moon and Mars, this Bahamian touchdown serves as a powerful reminder of how far SpaceX has already come.

[A Rare &ldquo;All-Reader&rdquo; Alert: One ticker symbol lets you grab a pre-IPO stake in Elon Musk&rsquo;s biggest, most ambitious project of his life&hellip; SpaceX.
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<blockquote>➔ Now, with the help of SpaceX, he&rsquo;s set to make trillions&hellip;</blockquote>
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<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-2-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-2_2x-new.png 2x" alt="2" width="37" />Trump Fights the Fed?
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />The Fed&rsquo;s January meeting minutes, released after we went to virtual press yesterday, suggest that Trump's strategies could put a wrench in the gears of disinflation. Specifically, the Federal Reserve warns that American wallets might feel the pinch if President Trump&rsquo;s tariff ambitions come to fruition.
Fed &ldquo;minutes,&rdquo; we remind you, aren't your typical meeting notes. Rather than an objective record, they're a carefully crafted political document, designed to guide market perceptions while often obscuring the full picture.
Meanwhile, even as Trump clamors for interest rate cuts, the Fed is standing pat, maintaining rates between 4.25&ndash;4.5% &mdash; the highest rates, in fact, since 2007. And Fed Chair Powell insists they&rsquo;re not rushing to slash rates further.
&ldquo;Analysts predict the Fed will likely cut the benchmark interest rate only once in 2025, with a big possibility of no rate cuts at all,&rdquo; says the BBC.
Trump, however, vows to &ldquo;demand&rdquo; immediate rate cuts. (It's a familiar demand from his first term, when Trump dubbed Fed officials &ldquo;boneheads&rdquo; and likened Powell to a golfer who can&rsquo;t sink a putt.)
Of course, this high-stakes game of economic-policy chicken raises eyebrows about the Fed&rsquo;s supposed political independence. As Trump&rsquo;s tariffs loom large, threatening to fan the flames of inflation, will the Fed withstand the heat of political pressure?
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> Exploring the market landscape today, stocks are getting a beatdown. The Big Board is faring the worst &mdash; down 570 points or 1.3% &mdash; to 44,050. Meanwhile, the tech-laden Nasdaq and S&amp;P 500 are both down about 0.70% to 19,915 and 6,100 respectively.
<ul>
<li>Notably, Walmart (WMT) announced Q4 earnings yesterday. The company reported strong performance, with revenue rising 4.1% to $180.6 billion, beating analysts expectations. Despite the positive results, WMT shares are down almost 7% at the time of writing due to cautious guidance for the rest of the year.</li>
</ul>
Taking a peek at commodities, oil is up 1% to $73 for a barrel of West Texas Intermediate. As for precious metals, both gold and silver are catching bids. The price of gold is up 0.70% to $2,957.20 per ounce while silver&rsquo;s up 1.15% to $33.40.
As for the market that never sleeps, Bitcoin is up 1.60%, just under $98,000. And Ethereum is up 0.30% to $2,725.
<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-3-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-3_2x-new.png 2x" alt="3" width="37" />The Rise and Fall of NYC&rsquo;s Congestion Toll
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> New York City&rsquo;s congestion pricing program, implemented on Jan. 5, 2025, has sparked heated debate. The program, which charges most vehicles $9 to enter Manhattan south of 60th Street during peak hours, was designed to reduce traffic, fund public transit and decrease vehicle emissions.
On the other hand, the program has been characterized as a regressive tax that unfairly burdens the middle class while benefiting wealthier Manhattan residents who are less reliant on cars.
NYC Councilwoman Vickie Paladino expresses the frustration felt by many: &ldquo;You can only push people so far. Otherwise law-abiding people who follow the rules and want to be left alone can only tolerate so much nickel-and-diming by a government that seems out to screw them at every opportunity before they've had enough.&rdquo;
To wit, one unintended consequence of the congestion program has been the emergence of so-called &ldquo;ghost cars&rdquo; with manipulated license plates attempting to evade toll cameras.
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> Now the controversy has escalated to the point where the U.S. Department of Transportation has rescinded approval of the congestion pricing system altogether. 
&ldquo;New York state&rsquo;s congestion pricing plan is a slap in the face to working-class Americans and small-business owners,&rdquo; says Transportation Secretary Sean Duffy.
Predictably, the Metropolitan Transportation Authority (MTA) has contested the federal order to terminate the program in court, arguing that it has already yielded positive outcomes such as decreased traffic congestion and improved travel times
&ldquo;New York&rsquo;s toll plan, inspired by cities such as <a href="https://paradigmpressroom.com/post/maxed-credit-card-now-what#4">London,</a> Stockholm and Singapore, is&rdquo; &mdash; er, was? &mdash; &ldquo;the nation&rsquo;s first congestion-pricing system,&rdquo; the Wall Street Journal notes.
&ldquo;[Gov.] Hochul delayed the start of the tolls in June after years of planning, citing concerns of the costs. She later brought it back with a lower fee.&rdquo;
Amid soaring inflation? That&rsquo;s already ravaging household budgets? New York City&rsquo;s congestion toll adds insult to injury &mdash; especially for New Yorkers who can least afford to take another financial hit.
<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-4-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-4_2x-new.png 2x" alt="4" width="37" />Middle Earth: &ldquo;Everyone Must Go!&rdquo;
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> New Zealand&rsquo;s latest $285,000 (USD) tourism campaign &mdash; &ldquo;Everyone Must Go!&rdquo; &mdash; sounds less like an invitation and more like a government diktat. 
(Or perhaps it's a subtle hint to join the record-breaking exodus from the country? More on that in a moment.)
<img class="aligncenter" src="https://images.ctfassets.net/vha3zb1lo47k/5RZV2XMNcxFz08bLYhroPT/d026b90a38ad1414ff4e2c4cef670bbe/NationalPark.png" alt="national park" width="540px" />
Prime Minister Christopher Luxon, however, claims the campaign&rsquo;s controversy is &ldquo;a great thing&rdquo; because, at least, people are talking. Meanwhile, the Labour Party&rsquo;s tourism spokesperson Cushla Tangaere-Manuel likens the slogan to New Zealand being &ldquo;in a clearance bin at a sale.&rdquo; Oh, dear&hellip;
But the irony is palpable. While the government tries to lure Australian tourists in particular, New Zealanders are fleeing the country in droves.
&ldquo;Official figures show that there were nearly 130,000 departures last year,&rdquo; the BBC reports, &ldquo;though that was offset by the arrival of nearly 160,000 immigrants.&rdquo;
This tourism fiasco is just the latest in a series of missteps. Remember the immigration boom under former Prime Minister Jacinda Ardern? Only to face rising unemployment and a recession in 2024.
Now, with official unemployment at 5.1% in December 2024 &mdash; and underemployment at 12.1% &mdash; immigrants and Kiwis alike might well wonder if they should stay or go.
In the end, New Zealand's tourism campaign perfectly captures the country's state: a beautiful landscape with a slightly desperate undercurrent. Come for the scenery, yes, but don&rsquo;t stay expecting a job.
<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-5-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-5_2x-new.png 2x" alt="5" width="37" />Nuclear Renaissance (and &ldquo;Bean Counters&rdquo;)
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />&ldquo;Perhaps this long weekend is the right time to share my experience in following <a href="https://paradigmpressroom.com/post/vance-vision#4">nuclear power</a> with you,&rdquo; writes a longtime reader and frequent contributor.
&ldquo;I started in 1974 as a consultant to Florida Power and Light writing procedures for the control of nuclear documents. After that I was an assistant project manager building two GE Mark II boiling water reactor plants for CFE in Mexico.
&ldquo;I should add that those plants have been running without incident since they were brought online. Of course, the cost overruns and schedule delays were legendary, but despite that they are working just fine.
&ldquo;I have found it frustrating to learn that safe and inexpensive nuclear power could be built and generated for less than the cost of coal plants, using molten salt reactor technology that was developed and proven at the Oak Ridge National Laboratory in the early 1960s.
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> &ldquo;The economic reasons why the development of this technology has been stymied are various, but the main culprit is the bureaucratic largesse of the Nuclear Regulatory Commission, and their support of myths about radiation,&rdquo; our reader continues.
&ldquo;While the imputed costs of the consequences of having blocked such progress will never be recovered, the actual taxpayer costs for propagating baseless radiation policy are monumental.
&ldquo;China is building and operating molten salt reactors of various power ratings already. Indonesia is in the process of implementing commercial-sized 500 megawatt modular units built in shipyards. In the U.S. we are making mud pies with dirt.
&ldquo;Investable opportunities in cheaper-than-coal molten salt fission technology are probably still a decade away, if we can defer going bankrupt until then.&rdquo;
Emily: To our reader&rsquo;s point, in September 2024 &mdash; in one of my Saturday highlight issues &mdash; I outlined Constellation Energy&rsquo;s deal with Microsoft to revive a reactor at Pennsylvania's Three Mile Island &mdash; marking the first time a U.S. nuclear reactor would be brought out of retirement.
According to a report from the <a href="https://www.nrc.gov/docs/ML0825/ML082560250.pdf">Nuclear Regulatory Commission</a> as well as a <a href="https://www.ucpress.edu/books/three-mile-island/paper">2004 book</a> published by University of California Press, the 1979 &ldquo;partial meltdown&rdquo; at Three Mile Island caused no casualties or lasting environmental damage.
But coupled with anti-nuclear activism, the incident led to onerous regulations plus a significant slowdown in nuclear plant construction and innovation.
Not to mention: &ldquo;[Activists] conflated nuclear weapons with nuclear energy,&rdquo; says Eric Dawson, co-founder of Nuclear New York. &ldquo;And they made it their mission to shut down nuclear energy.&rdquo;
A misunderstanding which persists today&hellip; But the tides might be turning?
Per a Feb. 5 order signed by newly confirmed Energy Secretary Chris Wright: &ldquo;The long-awaited American nuclear renaissance must launch during President Trump&rsquo;s administration.
<blockquote>As global energy demand continues to grow, America must lead the commercialization of affordable and abundant nuclear energy. As such, the department will work diligently and creatively to enable the rapid deployment and export of next-generation nuclear technology.</blockquote>
But a letter that American Nuclear Society CEO Craig Piercy addressed to Secretary Wright offers a dose of reality: &ldquo;You will spend more time than you think preparing budgets, arguing with the Office of Management and Budget over what&rsquo;s included, and then defending said budgets on Capitol Hill.
&ldquo;Don&rsquo;t let the bean counters steal from you!&rdquo;
Words to live by. And on that note&hellip;
Best regards,
<img class="aligncenter" src="https://media.paradigmpressgroup.com/signatures/emily-clancy.png" alt="Emily Clancy" width="250px" align="left" />
Emily Clancy Associate editor, Paradigm Pressroom's 5 Bullets

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Paradigm Pressroom’s 5 Bullets is a daily e-letter covering the economy and the markets, reaching 120,000 paying subscribers of the renowned financial publishing firm Paradigm Press.

Paradigm Pressroom's 5 Bullets

SpaceX makes history with a jaw-dropping rocket launch that crossed international borders.

8 Minutes to SpaceX History

shutterstock 2021859839

It was one of those events “no one could possibly see coming” — except someone did.

March Market Madness

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If you had any doubts about whether the present bull market still has legs… It absolutely still has legs. 

AI Bull Run: Three More Years? 

In general, your editor doesn't like calling people names. But I’m making an exception today.

Altman and Karp: Shape-Shifting Scum

<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-1-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-1_2x-new.png 2x" alt="1" width="37" />Four Pillars of Trump&rsquo;s AI Strategy
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />Earlier this week, Vance addressed the Paris AI Action Summit. His speech was a clarion call for embracing AI&rsquo;s potential rather than fearing its disruption.
Vance, in fact, articulated a pro-innovation stance that stands in stark contrast to the cautious approach of previous administrations and European counterparts.
&ldquo;We refuse to view AI as a purely disruptive technology that will inevitably automate away our labor force,&rdquo; he declared, painting a picture of AI as a tool for empowerment rather than displacement.
This perspective dovetails with the Trump administration&rsquo;s broader economic vision, emphasizing American prosperity and technological leadership.
The Vice President&rsquo;s words resonated with attendees as he outlined a future where AI enhances rather than replaces human labor.
&ldquo;The most immediate applications of AI almost all involve supplementing, not replacing, the work being done by Americans,&rdquo; Vance said, offering a reassuring message to workers concerned about job security in an increasingly automated world.
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> Vance&rsquo;s speech also highlighted the administration's commitment to fostering an environment of unfettered innovation.
&ldquo;To restrict its development now would not only unfairly benefit incumbents in the space, it would mean paralyzing one of the most promising technologies we have seen in generations,&rdquo; said Vance.
This stance signals a clear departure from regulatory approaches favored by some European nations as well as the Biden administration.
Instead, the Trump administration&rsquo;s AI strategy, as outlined by Vance, focuses on several key pillars:
<ul>
<li>Innovation-first approach</li>
<li>Deregulation to foster growth</li>
<li>Protection of free speech</li>
<li>Support for American workers.</li>
</ul>
This policy direction has sent ripples through the tech industry, with many experts predicting a potential boom for AI stocks.
In terms of AI, Paradigm&rsquo;s AI expert, James Altucher, wrote a seminal white paper on the subject when he was a student at Carnegie Mellon University in the 1980s. This week, given a nationwide platform, James weighed in on Vance&rsquo;s Paris speech.
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />&ldquo;Vance knows that regulation slows down innovation,&rdquo; said James, during a Fox News interview on Tuesday.
&ldquo;When [Vance] arrived in Europe,&rdquo; James continues, &ldquo;they tried to get him to sign a document [making] AI as inclusive and safe as possible. Which are great-sounding words. But who actually defines what those words mean? Some government bureaucrats. And they&rsquo;re not going to be as smart or as savvy as the people actually building AI.

<img class="aligncenter" src="https://images.ctfassets.net/vha3zb1lo47k/q9xiHGZ7zgexc5OSXHVOA/5032f43d4a4debefb9e6f08f456c0133/Screenshot_2025-02-14_at_8.06.31_AM.png" alt="james" width="540px" />

Source: Fox News
&ldquo;Believe me, China will have no regulations slowing them down,&rdquo; he notes. &ldquo;If we want to be first [in this AI race], we can either choose ourselves or China. No regulation is the way to choose ourselves.
&ldquo;Either we&rsquo;re going to be the leader in AI,&rdquo; James concludes, &ldquo;or we&rsquo;re going to be at the mercy of whoever is the leader in AI.&rdquo;

[Before we move on today: James Altucher points out a little-known government document&hellip; which reveals TRILLIONS of dollars in financial transactions&hellip; that have been quietly taking place on Wall Street for weeks.
A document that&rsquo;s responsible for some of the most explosive tech-and-AI stock gains in recent memory. &ldquo;Yet almost NO ONE is talking about <a href="https://pro.paradigm-press.info/m/2412668">this</a> besides me,&rdquo; says James.
&ldquo;But I believe this will mark the beginning of a new paradigm shift in the stock market. <a href="https://pro.paradigm-press.info/m/2412668">And you&rsquo;ll want to be ready for the release of big news TODAY.&rdquo;</a>]

<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> The Trump administration&rsquo;s approach could unleash a wave in the AI sector, potentially leading to groundbreaking advancements and economic growth.
And the Vice President&rsquo;s Paris address marks a significant shift in global AI-policy dialogue. By rejecting the caution that has guided much of European AI regulation, the White House is positioning the United States as a haven for AI innovation and development.
As the world grapples with the implications of rapid AI advancement, the U.S. stance articulated by Vance offers a bold vision for a future where AI and human workers coexist and thrive together.
This optimistic outlook &mdash; coupled with the administration&rsquo;s commitment to deregulation &mdash; could usher in an era of technological progress and economic prosperity.
As Vance&rsquo;s words echo through the halls of power and innovation hubs worldwide, the promise of AI-driven growth looms on the horizon, offering tantalizing possibilities for investors, workers and society at large.
While challenges remain, the Trump administration&rsquo;s embrace of AI as a force for positive change sets the stage for an exciting chapter in technological history.
<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-2-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-2_2x-new.png 2x" alt="2" width="37" />Inflation&rsquo;s Sticky Situation
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />The 5-year breakeven inflation rate is considered a more reliable indicator than the consumer price index (CPI). 
Not to get too technical, but this inflation indicator is derived by calculating the difference between the yield on a 5-year nominal Treasury security and the yield on a 5-year Treasury Inflation-Protected Security.
In short: This rate represents what market participants expect the average annual inflation to be over the next five years.
<ul>
<li>Historically, the 5-year breakeven inflation rate has fluctuated significantly, with a record high of 3.59% in March 2022 and a record low of -2.24% in November 2008</li>
</ul>
<ul>
<li>The current level &mdash; 2.64% as of Feb. 13 &mdash; while not at historical extremes, remains well above the long-term average of 1.94%.</li>
</ul>
This market-based indicator, consistently above 2% since late 2024, challenges the Fed&rsquo;s ability to bring price increases back to its 2% goal anytime soon.
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />According to the U.S. Census Bureau, month-over-month U.S. retail sales fell by 0.9% in January, a sharper decline than the anticipated 0.2%. In fact, this was the largest monthly drop since March 2023.
Some notable findings? Auto dealers saw a 2.8% decrease in sales, while online retail, typically a strong sector, experienced a 1.9% decline.
The sharp drop in retail sales suggests the almighty American consumer might be tapped out. Given that consumer spending accounts for approximately two-thirds of U.S. economic activity, we can safely forecast a slowdown in economic growth for the first quarter of 2025.
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> Checking on Mr. Market today: Well, he&rsquo;s struggling. At the time of writing, the S&amp;P 500 index and the tech-heavy Nasdaq &mdash; at 6,115 and 19,950 respectively &mdash; are barely hanging onto green. Meanwhile, the DJIA is down 0.25% to 44,600.
Likewise, commodities are getting clobbered today, with one exception. Oil is down 0.70% to $70.80 for a barrel of West Texas Intermediate. And the price of gold is down almost 1% to $2,916.80 per ounce. Silver, however, is up 1.10%, over $33.
As for the crypto market, Bitcoin&rsquo;s up 0.60% to $96,750 while Ethereum is up an impressive 2.75% to $2,730.
<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-3-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-3_2x-new.png 2x" alt="3" width="37" /> When NOT to &ldquo;Stick&rdquo; to Success
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />&ldquo;Here&rsquo;s an important question every investor should consider: What should I do when a popular stock goes parabolic?&rdquo; asks Paradigm&rsquo;s chart hound Greg Guenthner.
&ldquo;Today, I&rsquo;m going to focus on Palantir (PLTR) and its aforementioned 25% earnings rally as a real-world, real-time example of what happens when a hot stock starts to defy gravity,&rdquo; Greg says.
&ldquo;PLTR is an intelligence/AI/software mega-play that has been marching higher for the better part of the past 12 months. Most investors can&rsquo;t seem to articulate exactly what the company does or how it does it, but that hasn&rsquo;t stopped the herd from running with the bulls.
&ldquo;PLTR finished 2024 with a gain of nearly 350%, thanks mostly to a fourth-quarter surge that has carried over to the new calendar year. Investors were then treated to an incredible 25% earnings gap last week after the company dropped strong numbers and guidance.
&ldquo;The one-day move was a marvel to behold. Here we have a stock that had already doubled since its previous earnings report, only to once again appease the animal spirits and leap to new highs.
&ldquo;But it wasn&rsquo;t done yet! Instead of attempting to fill its earnings gap (or even rest, for that matter), PLTR continued to rise double-digits since last week&rsquo;s earnings report, closing at another round of all-time highs Monday afternoon.
<img class="aligncenter" src="https://images.ctfassets.net/vha3zb1lo47k/7fy0QJXvlqfMT22QiZBWh/b90f3508840f71f3afb148caef13f70b/2.14_5_Bullets_Chart.png" alt="artificial euphoria" width="540px" />
&ldquo;PLTR shares are now up more than 50% year to date, and more than 360% year over year, easily cementing it as one of the most popular stocks on the market today.
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> &ldquo;PLTR&rsquo;s abrupt move that began in January is what folks in the charting world call a hockey stick &mdash; a parabolic rally wherein a stock shoots higher in a nearly vertical ascent, forming the namesake shape,&rdquo; Greg adds.
&ldquo;Obviously, PLTR is overbought following its latest earnings rally,&rdquo; he continues. &ldquo;PLTR is expensive by any metric. But it was expensive coming into the year before this latest rally, too. AI has its evangelists and naysayers &mdash; and the narrative will evolve no matter what happens to this one specific stock.
&ldquo;From a purely tactical perspective,&rdquo; Greg continues, &ldquo;it&rsquo;s difficult to imagine a situation where PLTR doubles again before experiencing some sort of dramatic pullback.
<ul>
<li>&ldquo;If I were involved with PLTR, I would take at least partial profits</li>
<li>And if I were stalking this name, I would not want to start a new position at these levels.</li>
</ul>
&ldquo;I&rsquo;m interested to see how parabolic moves in popular stocks like PLTR affect the market over the next several weeks,&rdquo; says Greg. &ldquo;While I&rsquo;m not officially worried about a broad market drawdown just yet, I am keeping my antennae up for any signs of exhaustion.
&ldquo;Would a momentum reset in PLTR lead to a bigger market correction? Will we finally see that elusive 10% pullback investors have avoided for the past 16 months?
<a id="4"></a>
&ldquo;These are the questions you should keep in mind as these popular momentum stocks gap higher and run nearly every single day. Right now, the averages are challenging all-time highs and investors are being rewarded for buying the dips.&rdquo;
Greg warns, however: &ldquo;Eventually, the hockey sticks will break.&rdquo;
<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-4-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-4_2x-new.png 2x" alt="4" width="37" />UPDATE: The AI Power Crunch
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />In our ongoing coverage of the AI-driven energy pinch, Google underscores the severity of the grid capacity crisis facing the U.S. &mdash; especially in light of the AI race against China. 
This issue has come to the forefront since China&rsquo;s DeepSeek caused a significant drop in major energy firms&rsquo; stock prices in late January due to speculation about DeepSeek&rsquo;s more energy-efficient AI model.
&ldquo;We are in an AI race against China right now,&rdquo; says Caroline Golin, Google&rsquo;s global leader for energy market development, &ldquo;[and] we are in a capacity crisis in this country right now.&rdquo;
That said, four years ago, Google initiated an ambitious plan to operate entirely on carbon-free renewable energy. But according to Golin, Google faced insufficient capacity to support their data centers, leading the tech company to consider nuclear energy as a viable alternative.
In October, Google announced a deal to purchase 500 megawatts of power, using Kairos Power&rsquo;s small modular nuclear reactors (SMRs).
These advanced designs promise faster deployment of nuclear power due to their smaller footprints and streamlined manufacturing. The first reactor is planned for deployment in 2030, with additional units coming online through 2035.
The U.S. power capacity crisis, highlighted by Google&rsquo;s concerns about infrastructure for AI development, provides critical context for Vice President Vance&rsquo;s AI optimism. It underlines the need for innovation not only in AI technology, but also in cost-effective energy solutions.
<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-5-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-5_2x-new.png 2x" alt="5" width="37" />Nothing Says &ldquo;I Love You&rdquo;... 
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> &hellip;like a reservation at Waffle House?!?
This Valentine&rsquo;s Day, Waffle House is serving up romance. Over 200 locations across 22 states are dimming the lights, breaking out the fancy tablecloths and transforming into the hottest date-night spot in town.

<img class="aligncenter" src="https://images.ctfassets.net/vha3zb1lo47k/OUg8Qih2ApsJBOClgUihT/83b0c9527eb58d6c43a073115558ec22/WaffleHouse.png" alt="waffle house" width="300px" />

Courtesy: Waffle House
For one night only, these 24/7 diners will trade their &ldquo;always open&rdquo; policy for an exclusive &ldquo;reservation required&rdquo; experience.
The tradition began in Johns Creek, Georgia, where a manager decided to sprinkle some amore into the usual greasy-spoon fare. Now, couples can gaze lovingly into each other&rsquo;s eyes over a plate of scattered, smothered or covered hash browns.
So if you're looking to impress (er, depress?) your sweetheart without breaking the bank, Waffle House has got you covered. Just be sure to make your reservation between 9 a.m. and 5 p.m. local time.
After all, in these inflationary times, there&rsquo;s no better (er, cheaper?) way to say, &ldquo;Be my Valentine.&rdquo;
Have a wonderful weekend! Check your inbox on Monday &mdash; Presidents&rsquo; Day &mdash; for a special guest essay&hellip; We&rsquo;ll be back to our regularly scheduled format on Tuesday.
Happy Valentine&rsquo;s Day,
<img class="aligncenter" src="https://media.paradigmpressgroup.com/signatures/emily-clancy.png" alt="Emily Clancy" width="250px" align="left" />
Emily Clancy Associate editor, Paradigm Pressroom's 5 Bullets

5 bullets hero Benjamin Franklin face on dollar bill

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Vance addressed the Paris AI Action Summit. His speech was a clarion call for embracing AI’s potential rather than fearing its disruption.

Vance Vision 

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MAMA

<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-1-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-1_2x-new.png 2x" alt="1" width="37" />Nation-Building, Trump Style
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />The president who once scorned &ldquo;nation building&rdquo; at his public rallies seems determined to undertake the most delusional nation-building project in U.S. history.
It was a week ago yesterday that Donald Trump declared the United States would &ldquo;take over&rdquo; the Gaza Strip.
The details of that plan are no clearer today than they were then.
Only yesterday he said, &ldquo;We're not going to have to buy... We&rsquo;re going to have Gaza. We don't have to buy. There's nothing to buy. We will have Gaza&hellip; There is nothing to buy. It's Gaza... it's a war-torn area. We're going to take it, we're going to hold it, we're going to cherish it.&rdquo;
The unanswered questions boggle the mind.
If the United States isn&rsquo;t buying it, how then will the United States acquire it? Following that, how will the United States secure it without using military force? Who would oversee the expulsion of 1.8 million people currently living there? Who would cover that cost? Who&rsquo;s going to pay for redevelopment?
The corporate media &mdash; which spent years hounding Trump over rubbish like &ldquo;Russian collusion&rdquo; and &ldquo;insurrection&rdquo; &mdash; suddenly finds itself incapable of holding him to account at a moment when it truly matters.
No, instead, it&rsquo;s certain MAGA-adjacent folk who are aghast &mdash; because they grasp there&rsquo;s nothing about this scheme that aligns with a vision of &ldquo;America first.&rdquo;
<img class="aligncenter" src="https://images.ctfassets.net/vha3zb1lo47k/2rC0vMq5iPH8lzUytVH5vC/7e1961660abd367e628071d115829f5c/Jack.png" alt="jack tweet" width="540px" /> <img class="aligncenter" src="https://images.ctfassets.net/vha3zb1lo47k/4Rt0jBbzYnktmzmicABnHI/519eaa0b7936417eeab46a2abdbcf68e/Sean.png" alt="sean tweet" width="540px" />
On whether U.S. troops will be deployed to Gaza, Trump said yesterday, "If it's necessary, we'll do that &mdash; we're going to take over."
As you&rsquo;re about to see&hellip; the president who first rode into office on a wave of revulsion with endless Middle East wars has stepped back into a doom loop that began on 9/11.
<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-2-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-2_2x-new.png 2x" alt="2" width="37" />9/11 x 10
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />Apart from the shock and the death, let&rsquo;s not forget the financial and economic impact of the 9/11 attacks in 2001.
The Twin Towers fell on a Tuesday morning. The stock market was closed the rest of the week.
When it opened the following Monday, the Dow fell 7.1% in a day &mdash; a vicious drop in the middle of a miserable bear market that began with the bursting of the dot-com bubble in early 2000 and didn&rsquo;t end until late 2002.
A mild recession was already underway before the attacks. The attacks prompted the Federal Reserve under Alan Greenspan to crank up the printing presses in hopes of &ldquo;stimulating&rdquo; the economy and making George W. Bush&rsquo;s wars seem cost-free.
The result was a bubble in the housing and credit markets that burst catastrophically with the global financial crisis of 2008.
<a href="https://paradigmpressroom.com/post/a-totalitarian-bureaucracy-within-our-shores">As we&rsquo;ve chronicled before</a>, al-Qaida pulled off the attacks for a cost of about $500,000. The ensuing 20 years of &ldquo;forever wars&rdquo; in the Middle East and South Asia cost the U.S. government $8.043 trillion.
Going by those numbers, Osama bin Laden and crew generated a formidable return of 16,086,000:1.
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> What drove the 19 hijackers to do what they did?
Contrary to what Bush said, they didn&rsquo;t &ldquo;hate us for our freedoms.&rdquo; Nor did they lash out against decadent Western culture represented by McDonald&rsquo;s cheeseburgers and Madonna music videos.
The hijackers said they were radicalized by U.S. meddling in the Middle East &mdash; especially U.S. support for Israel.
The lead hijacker, Mohammed Atta, said the turning point for him was the Israeli shelling of a refugee camp in Lebanon during 1996, killing 106.
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />Fast-forward to the present: Whether you realize it or not&hellip; the U.S. government has subsidized much of Israel&rsquo;s assault on Gaza that began after the Hamas attack in October 2023.
On the occasion of the first anniversary in October 2024, the Costs of War project at Brown University determined that U.S. support for Israel over those 12 months cost U.S. taxpayers at least $22.76 billion. That&rsquo;s $67 for every man, woman and child in the United States.
A related estimate by the Israeli newspaper Calcalist finds that Washington is funding 70% of Tel Aviv&rsquo;s military costs.
You might not be aware of those figures. But millions of people across the Arab and Muslim worlds are. Surely a few of them already feel the same call to action Mohammed Atta did.
And now Trump seeks to expel 1.8 million people from Gaza &mdash; an act that would only amplify the existing rage. We could be looking at 9/11 times 10.
So much for &ldquo;America first.&rdquo;
<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-3-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-3_2x-new.png 2x" alt="3" width="37" />No, They Won&rsquo;t Leave Willingly
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> About the fate of the 1.8 million people still alive in Gaza&hellip;
Trump has repeatedly said over the last week that whenever the makeover of Gaza is complete, they won&rsquo;t be allowed to return to where their homes once were.
&ldquo;No, they wouldn&rsquo;t,&rdquo; he told Fox News on Saturday &mdash; &ldquo;because they&rsquo;re going to have much better housing. In other words, I&rsquo;m talking about building a permanent place for them.&rdquo;
Where that permanent place is supposed to be is up in the air. Trump says he&rsquo;s going to browbeat Jordan and Egypt into taking them. But during a visit to the White House yesterday, King Abdullah of Jordan demurred. He reinforced his position later on social media.
<img class="aligncenter" src="https://images.ctfassets.net/vha3zb1lo47k/7D6OHYOQGgIDliLiNWuC0d/119e7d55fc7baf3cdfa3cf1c4313aa81/king.png" alt="king tweet" width="540px" />
The king knows full well that if his country takes in any more Palestinian refugees than it has already&hellip; he&rsquo;ll be deposed and strung up the next day. And Trump probably won&rsquo;t like whoever replaces him.
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> Yes, the Gazans&rsquo; homes have been ground to dust. But it&rsquo;s their homes. Their shops. Their olive groves. How would you feel if God forbid you were in their shoes?
Trump&rsquo;s Middle East envoy Steven Witkoff tried to blow off that aspect. &ldquo;Peace in the region means a better life for Palestinians&mdash;a better life is not necessarily tied to the physical space that you are in today,&rdquo; he said on Fox News. &ldquo;A better life is about better opportunity, better financial conditions, better aspirations for you and your family.&rdquo;
Really, how much more globalist can you get?
Or as Hunter DeRensis writes in The American Conservative, &ldquo;Is there a mindset more hostile to the conservative understanding of human nature than Witkoff&rsquo;s reduction of man to a rootless, economic animal unmoored from history, family, land, language and God?&rdquo;
There&rsquo;s also an uncomfortable historical parallel that Palestinians are all too aware of: Adolf Hitler initially wanted to exile the Jews of Europe to the island of Madagascar. Only when that proved impractical did he resort to the &ldquo;final solution.&rdquo;
&ldquo;It is simply unrealistic that Palestinians, once removed from their homeland, will sit quietly and watch from their new homes as the United States and Israel occupy it,&rdquo; writes Branko Marcetic, also at The American Conservative.
&ldquo;In short, Trump&rsquo;s plan would likely ensure never-ending and quite possibly widening war, not lasting peace and stability.&rdquo;
<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-4-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-4_2x-new.png 2x" alt="4" width="37" />U.S. Troops in the Crosshairs
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> Which leads to the biggest unanswered question of all: Who would force the Gazans from their homes if they don&rsquo;t go willingly?
Would it be the Israel Defense Forces? For all the death and destruction they&rsquo;ve wrought, they still haven&rsquo;t met their goal of &ldquo;eliminating&rdquo; Hamas&hellip; so how are they going to take on this new task?
Or would it be U.S. troops?
Good luck with that, says retired Col. Lawrence Wilkerson.
Wilkerson was the longtime aide to Secretary of State Colin Powell who&rsquo;s spent the last 20-plus years making amends for helping his boss gin up the Iraq War. He says the troops would resist.
&ldquo;They&rsquo;re not going to do that, in my view,&rdquo; he said last week on Andrew Napolitano&rsquo;s Judging Freedom podcast.
&ldquo;Even if [Defense Secretary Pete] Hegseth orders them to, they&rsquo;re going to leave the service before they&rsquo;ll do that &mdash; or the majority of them will, they&rsquo;ll refuse to go. And if they get there and are ordered to do that, they&rsquo;ll refuse to do it.
&ldquo;And should they do it, Hamas will take them on and do the same to them they did to the IDF &mdash; beat the **** out of them.&rdquo;
Even the bloodthirsty Sen. Lindsey Graham (R-South Carolina) is thrown for a loop at this prospect. &ldquo;I think most South Carolinians would probably not be excited about sending Americans to take over Gaza,&rdquo; he said last week. Gaza &ldquo;would be a tough place to be stationed as an American.&rdquo;
As it happens, last month was the best month for Army recruiting in 15 years &mdash; perhaps because those new recruits believed in the promise of a foreign policy that put America first.
&ldquo;Did those young men sign up in anticipation of another bloody war of choice,&rdquo; writes DeRensis in his American Conservative piece &mdash; &ldquo;or because they had momentary hope that if they put their lives on the line for their country they&rsquo;d be treated more thoughtfully than by Trump&rsquo;s predecessors?&rdquo;
<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-5-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-5_2x-new.png 2x" alt="5" width="37" />Who Voted for This, Anyway?
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />Before we wrap it up, we should address an objection &mdash; the one about how Trump is playing four-dimensional chess and has an endgame none of us mere mortals can comprehend.
National Security Adviser Mike Waltz tried to make that case last week &mdash; suggesting Trump is pressuring Israel&rsquo;s neighbors to come up with their own plan for Gaza.
&ldquo;I don&rsquo;t think [Trump&rsquo;s plan] should be criticized in any way,&rdquo; he told CBS News. &ldquo;It&rsquo;s going to bring the entire region to come with their own solutions.&rdquo;
As the independent journalist Aaron Mate reminds us, the 22 nations of the Arab League developed their own solutions over 20 years ago. The Arab Peace Initiative of March 2002 offered full normalization of relations with Israel in exchange for a Palestinian state in the West Bank and Gaza. Israel would have wound up with 78% of the land that made up historic Palestine.
Israelis might not like that plan, but that&rsquo;s their problem. It shouldn&rsquo;t be ours. America first.
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />By now, Trump has repeated his Gaza intentions often enough that they can&rsquo;t be dismissed as one of his wild-hair ideas, good for half a news cycle before going down the memory hole.
And none of it came up during the campaign last year.
As Glenn Greenwald tweets, &ldquo;Do Republicans now think American voters cast their 2024 ballot so that their kids would be deployed to a war in the Middle East to fight against Palestinians in Gaza, force them to leave and then give the land to Israel and Jared Kushner?
&ldquo;I don't remember polls showing that.&rdquo;
Grim as the prospect is, you and I must face it squarely as citizens and investors.
As Marcetic sums up in his American Conservative article, &ldquo;not only would the Gaza takeover plan mean once more endangering American lives at the behest of a foreign government, and for no conceivable benefit to U.S. interests, but it makes it more likely for the United States to be pulled into another terrible war in the region.&rdquo;
And, awful as it is to contemplate, new attacks at home.
Best regards,
<img class="aligncenter" src="https://media.paradigmpressgroup.com/signatures/dave-gonigam.png" alt="Dave Gonigam" width="250px" align="left" />
Dave Gonigam Managing editor, Paradigm Pressroom's 5 Bullets
P.S. Oh, look, it&rsquo;s another hotter-than-expected inflation number.
The Labor Department is out with the January consumer price index. The &ldquo;expert consensus&rdquo; among Wall Street economists was there&rsquo;d be a 0.3% month-over-month increase.
Oops &mdash; it was 0.5%, the biggest monthly jump since August 2023.
That means the official year-over-year inflation rate is back to 3.0% &mdash; up sharply from 2.4% only four months earlier.
To be sure, this number will likely make the Fed wait even longer before resuming its 2024 rate-cut cycle &mdash; if it resumes at all.
Mr. Market is taking this development surprisingly in stride: At last check the Dow is down about a third of a percent and the Nasdaq is up about a fifth of a percent. The S&amp;P 500 is slightly in the red at 6,061 &mdash; squarely in the middle of its trading range the last three weeks.
Gold clings, however tenuously, to the $2,900 level. Today it&rsquo;s silver&rsquo;s turn to take the lead, up 1.7% and comfortably over $32.
For once, crypto is like watching paint dry &mdash; Bitcoin still hovering a little over $97,000.
Crude is taking a tumble after the weekly inventory numbers from the Energy Department, down nearly two bucks to $71.62.
The next economic number of consequence is retail sales, coming on Friday. We&rsquo;ll see how well the mighty American consumer is holding up against this inflationary resurgence.
And we&rsquo;re back tomorrow with &ldquo;regular programming&rdquo; covering multiple themes. Thanks for hearing us out for one of our occasional single-topic deep dives.

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Trump seeks to expel 1.8 million people from Gaza — an act that would only amplify the existing rage. We could be looking at 9/11 times 10.

9/11 x 10

<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-1-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-1_2x-new.png 2x" alt="1" width="37" />Elon&rsquo;s ChatGPT Gambit
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />One day after OpenAI ran a Super Bowl commercial for ChatGPT that left viewers cold&hellip; Elon Musk submitted a bid to buy the company.
<blockquote>➢ Sidebar: It seems all the AI-oriented Super Bowl ads fell flat &mdash; a far cry from the crypto ads three years ago. Needs more Larry David?</blockquote>
&ldquo;A consortium of investors led by Elon Musk is offering $97.4 billion to buy the nonprofit that controls OpenAI,&rdquo; says this morning&rsquo;s Wall Street Journal &mdash; &ldquo;upping the stakes in his battle with Sam Altman over the company behind ChatGPT.&rdquo;
As you might be aware, Musk was one of OpenAI&rsquo;s co-founders in 2015. He and Altman had a falling-out no later than 2020, when Musk hit out at what he thought was OpenAI&rsquo;s lack of transparency. By last year, Musk sued OpenAI &mdash; accusing it of abandoning its nonprofit mission to develop AI for the betterment of humanity.
Indeed, Altman wants to convert OpenAI to a for-profit company.
Which, when you get right down to it, it already is. I mean, look at that Super Bowl commercial. I assure you Fox didn&rsquo;t pass up $16 million in revenue so it could give 60 seconds of airtime to a nonprofit for a public service announcement.
&ldquo;It&rsquo;s time for OpenAI to return to the open-source safety-focused force for good it once was,&rdquo; says a Musk statement furnished by his lawyer.
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> Altman has been vociferous in rejecting the offer.
<img class="aligncenter" src="https://images.ctfassets.net/vha3zb1lo47k/7k92RBd7w0uBrTSnpIzfec/bfab0edffb1f3f740594f2c1c1e610af/Sam-Tweet.png" alt="Sam Tweet" width="540px" />
That was some pretty good trolling &mdash; and he should have just left it there.
But no, Altman felt compelled to make the rounds on financial TV this morning. He told Bloomberg TV that OpenAI is &ldquo;not for sale.&rdquo; He told CNBC Musk is simply trying to &ldquo;slow down a competitor.&rdquo;
Sorta makes you wonder if he&rsquo;s nervous about the conversion to a for-profit going through. Among the many thorny questions still to be answered is how much equity OpenAI&rsquo;s investors &mdash; like Microsoft &mdash; would get in the new company.
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> Of course, it&rsquo;s fair to ask whether Musk is serious.
On our internal Paradigm e-chat, Jim Rickards&rsquo; right-hand man Dan Amoss pointed out that only last month, The Wall Street Journal reported that OpenAI is talking with deep-pocketed investors about a new round of funding that would value the company as high as $300 billion.
Taking that figure at face value, $97 billion is a ridiculously lowball offer.
On the other hand, &ldquo;Elon implies OpenAI should go back to open source,&rdquo; Dan says &mdash; meaning the code would be available for anyone and everyone to tinker with. &ldquo;If so, what exactly is the business model? The amount he&rsquo;d pay might as well be burnt in a bonfire.&rdquo;
We&rsquo;re not going to spend any more time harping on this today. It&rsquo;s an ego contest.
And there&rsquo;s no investment angle, really.
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />Besides, Musk has much bigger fish to fry in conjunction with Donald Trump &mdash; and there is an investment angle there.
&ldquo;From their plans to cut government regulations and lower taxes for American businesses, all of this benefits a specific group of stocks above all the others,&rdquo; says Paradigm&rsquo;s AI and crypto authority James Altucher.
And James believes the floodgates will open this Friday &mdash; &ldquo;when a little-known government document reveals trillions of dollars in financial transactions that have been quietly taking place on Wall Street for weeks.
&ldquo;I believe this will mark the beginning of a new paradigm shift in the stock market,&rdquo; James says &mdash; indeed, the start of an epic bull market for a select group of stocks. (Not the ones you read about all the time.)
As you might suspect, James believes you&rsquo;ll get the best results if you act before Friday. <a href="https://pro.paradigm-press.info/m/2411179">Details at this link</a>.
<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-2-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-2_2x-new.png 2x" alt="2" width="37" />Jitters on Main Street
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> It&rsquo;s not just Wall Street that&rsquo;s jittery about Trump economic policies. So is Main Street.
Or so we&rsquo;d conclude from the monthly Small Business Optimism Index, out this morning from the National Federation of Independent Business.
As we chronicled late last year, the index leaped higher after Trump&rsquo;s election to its highest levels since 2018. But the January survey shows the number pulling back from 105.1 to 102.8.
And then there&rsquo;s the &ldquo;uncertainty&rdquo; portion of the survey &mdash; where higher numbers are bad. This number eased off after Trump&rsquo;s election&hellip; but it spiked in January to its third-highest reading in history. (And this survey&rsquo;s been conducted for over 50 years now.)
Of course, the NFIB&rsquo;s membership leans Republican, so NFIB chief economist Bill Dunkelberg had to choose his words carefully in describing these results.
&ldquo;Overall,&rdquo; he said, &ldquo;small-business owners remain optimistic regarding future business conditions, but uncertainty is on the rise. Hiring challenges continue to frustrate Main Street owners as they struggle to find qualified workers to fill their many open positions. Meanwhile, fewer plan capital investments as they prepare for the months ahead.&rdquo;
On the part of the survey where respondents are asked to identify their single-most important problem, &ldquo;quality of labor&rdquo; is tied with inflation &mdash; both cited by 18%. But taxes are right up there at 17% &mdash; and that number is higher than it was a month earlier. Hmmm&hellip;
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> After an up day yesterday, Mr. Market is struggling for direction.
At last check, the S&amp;P 500 is almost ruler-flat at 6,065. The Nasdaq is down fractionally, the Dow up fractionally.
Among the crosscurrents in play: The White House says there will be no exceptions to the steel-and-aluminum tariffs announced over the weekend. Meanwhile, Federal Reserve chair Jerome Powell is telling Congress there&rsquo;s no need &ldquo;to be in a hurry&rdquo; to resume interest rate cuts.
Gold dipped below $2,900 earlier today, but it&rsquo;s back above that level as we write. Silver, however, is back under $32. Crude is back over $73. Bitcoin continues to oscillate around $97,000.
<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-3-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-3_2x-new.png 2x" alt="3" width="37" />The (Indian) Elephant in the Room
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />It&rsquo;s one of the strangest laws on Uncle Sam&rsquo;s books. And Donald Trump is calling a time-out on enforcement.
Yesterday he signed an executive order directing the Department of Justice to deliver &ldquo;revised, reasonable enforcement guidelines&rdquo; on the Foreign Corrupt Practices Act.
This law, enacted in 1977, punishes American companies that bribe government officials in other countries. Over the years, it&rsquo;s been used against everyone from Goldman Sachs to the mining giant Glencore.
The White House says the law puts U.S. firms at a disadvantage because they can&rsquo;t resort to practices that are &ldquo;common among international competitors.&rdquo;
That&rsquo;s the least of it. Really, what business is it of the U.S. government if an American business bribes a foreign official? After all, bribery is a common practice in our own country; it just gets gussied up under the rubric of &ldquo;lobbying.&rdquo;
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> Absent from the coverage of this story in U.S. media is how Trump&rsquo;s order might affect one of the weirder prosecutions pursued by the Biden administration.
This isn&rsquo;t even a prosecution of an American company or person. Instead, the feds charged the Indian billionaire Gautam Adani with bribing Indian government officials to snag juicy solar-energy contracts.
Yes, Washington is prosecuting someone overseas for bribing his own government officials &mdash; on the theory that it somehow hurt Adani&rsquo;s American investors. (Did any of Adani&rsquo;s American investors complain? No, they did not.)
While U.S. media are ignoring this angle, Indian media are all over it: &ldquo;The pause and the review is being seen as a relief to the Adani Group,&rdquo; says The Economic Times, &ldquo;but it remains to be seen what stand the DoJ takes after [a] six-month review period.&rdquo;
As I wrote when the feds charged Adani last November, if you&rsquo;re in Washington, D.C... and if your status as &ldquo;the world&rsquo;s sole superpower&rdquo; is hanging by a thread&hellip; and if the nation-state that&rsquo;s home to one out of six humans on Earth is deftly playing off Washington against Beijing and Moscow&hellip;
&hellip; then it&rsquo;s probably a dumb idea to prosecute the second-richest guy in that country on a flimsy pretext, especially when he&rsquo;s besties with the guy who&rsquo;s been prime minister for over 10 years now.
Maybe someone in the Trump administration recognizes this indictment will only push New Delhi closer to its fellow BRICS countries &mdash; you know, the ones trying to escape the dollar&rsquo;s worldwide dominance?
<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-4-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-4_2x-new.png 2x" alt="4" width="37" />&ldquo;3.69 Cents for Your Thoughts&rdquo; Doesn&rsquo;t Sound Right
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />In reading this morning about Donald Trump&rsquo;s order to the Treasury to stop minting pennies &mdash; because the cost of production is 3.69 cents each &mdash; a flash of fury came over me.
But I don&rsquo;t have to write about it today, because Rude Awakening editor Sean Ring beat me to the punch. (Living in Europe, he gets a six-hour jump on me.)
&ldquo;What gets my goat,&rdquo; he wrote, &ldquo;is that inflation is so damn out of control that there&rsquo;s a verifiable reason to stop making them [pennies].
&ldquo;It&rsquo;s as if the new USG is saying, &lsquo;We&rsquo;re never going to get prices back down to the level you wanted them at (deflation), but we&rsquo;ll do our best to keep them from rising too quickly (disinflation).&rsquo;&rdquo;
The investment angle, you wonder? Even with gold trading near record levels, it&rsquo;s worth adding to your existing holdings &mdash; or starting to accumulate if you haven&rsquo;t already. <a href="https://rudeawakening.info/posts/the-pennys-in-heaven">Read, learn, enjoy</a>.
<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-5-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-5_2x-new.png 2x" alt="5" width="37" />Mailbag: Swamp Rats, Silver
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />In response to our main topic yesterday &mdash; <a href="https://paradigmpressroom.com/post/elon-vs-the-pentagon">the DOGE boys descending on the Pentagon</a> &mdash; a reader writes&hellip;
&ldquo;Definition of a swamp rat: Any politician (past or present), government bureaucrat or judge, regardless of political party, race, religion, gender or creed, that puts up any roadblock or argument in an attempt to thwart a full and complete audit of the Department of Defense with associated prosecutions for malfeasance.&rdquo;
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> &ldquo;Hi, Dave &mdash; I'd like to push back and question the assertion that silver needs to outperform gold consistently for this rally to be legitimate,&rdquo; a reader writes.
&ldquo;Why is this a requirement? I understand that's how it went in the big metals rallies in '79&ndash;'80 and again in 2011, but there is the old adage that past performance does not guarantee future results, or a similar pattern.
&ldquo;Could it not be different this time? Could gold, much more a purely money metal than silver, not lead the run-up and silver, with its dual role as both money metal and industrial metal, be the laggard?
&ldquo;I'm thinking if we truly are in a recession, that argument could be made if the industrial sector itself is stagnant or declining, and we have the central bank gold-buying spree over the past three years still going full tilt, as Jim Rickards and others have pointed out, and the recently released World Gold Council report has proven.
&ldquo;That factor could not only put a solid floor under the price; it could keep pushing that floor higher while silver's industrial facet could act as a boat anchor holding it down, countering the action of its other identity as money unless its monetary aspect takes over, possibly with central bank buying as a driver, like with gold&hellip; Does this make sense?
&ldquo;Thanks &mdash; I'm also very interested to see what Elon and crew find in the most offensive 'defense' department there ever was. Keep up the good work!&rdquo;
Dave responds: All good points.
That said, silver&rsquo;s industrial demand is&hellip; well, maybe not recession-proof, but certainly recession-resistant. People in developed countries will still want their electronics and China will continue its relentless build-out of solar panels. And there&rsquo;s not that much silver from those sources that gets recycled.
More to the point, the market for silver is much smaller than that for gold &mdash; which means that small moves in demand can translate to big moves in price. So far, that&rsquo;s not materializing.
Oh well, just an opportunity to keep stacking&hellip;
Best regards,
<img class="aligncenter" src="https://media.paradigmpressgroup.com/signatures/dave-gonigam.png" alt="Dave Gonigam" width="250px" align="left" />
Dave Gonigam Managing editor, Paradigm Pressroom's 5 Bullets

shutterstock 2390534437

One day after OpenAI ran a Super Bowl commercial for ChatGPT that left viewers cold… Elon Musk submitted a bid to buy the company.

Elon’s ChatGPT Gambit

<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-1-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-1_2x-new.png 2x" alt="1" width="37" />Elon vs. the Pentagon
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />I can&rsquo;t remember the last time a presidential pre-Super Bowl interview made real news. Heck, yesterday might be the first time.
The &ldquo;tradition&rdquo; of these interviews goes back to George W. Bush in 2004. Typically they&rsquo;re a snooze. On occasion there&rsquo;ve been fireworks &mdash; Barack Obama and Bill O&rsquo;Reilly, for instance &mdash; but those episodes shed more heat than light.
Not so yesterday.
As if reading your editor&rsquo;s protest in Friday&rsquo;s edition &mdash; wondering whether Elon Musk&rsquo;s DOGE boys would be unleashed at the Pentagon &mdash; Donald Trump said, &ldquo;Let&rsquo;s check the military.
"We're going to find billions, hundreds of billions of dollars of fraud and abuse, and the people elected me on that."
To be sure, that wasn&rsquo;t a spontaneous remark. Indeed Defense Secretary Pete Hegseth teed it up earlier in the day on the Sunday morning talk-show circuit.
"When we spend dollars,&rdquo; he said, &ldquo;we need to know where they're going and why, and that has not existed at the Defense Department,"
That&rsquo;s an understatement, to say the least.
Mainstream media articles addressing the president&rsquo;s remarks usually point out the Pentagon has failed an audit for seven straight years.
That doesn&rsquo;t even begin to tell the whole story &mdash; a story we&rsquo;ve been tracking in these digital pages for more than a decade. Strap in&hellip;
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> If you&rsquo;re old enough you might remember the outrageous Pentagon spending scandals that emerged in the mid-1980s &mdash; $640 toilet seats, $435 hammers.
(And those were in 1985 dollars!)
The outrage built throughout the rest of the &rsquo;80s &mdash; pushing Congress to pass a law in 1990 requiring the Pentagon to be audit-ready by 1996.
As perhaps you&rsquo;ve already guessed, the Pentagon blew that deadline.
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> The next chapter in the story has become the stuff of legend &mdash; indeed, it turned up in a meme I ran across yesterday, coinciding with the president&rsquo;s interview.
<img class="aligncenter" src="https://images.ctfassets.net/vha3zb1lo47k/9R4uCZR49AxrvLA7tMoPz/511ddd519233e817b08942d08f2973d0/Pentagon.png" alt="pentagon" width="540px" />
There was in fact no audit in the years following the 1996 deadline&hellip; but on Sept. 10, 2001, Defense Secretary Donald Rumsfeld made the following remark, on-camera, about the sloppiness of the Pentagon&rsquo;s books: "According to some estimates, we cannot track $2.3 trillion in transactions."
It was a staggering figure &mdash; at the time, more than a third of the $5.8 trillion national debt.
And it was all forgotten the next day because that&rsquo;s when the Sept. 11 attacks happened. The imperative of tracking all that money took a back seat to bombing and &ldquo;nation building&rdquo; in Afghanistan and Iraq.
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> In 2009, Congress "got tough" and imposed a new cross-your-heart, hope-to-die deadline for the Pentagon to be audit-ready: 2017.
Alas, there were no "or else" consequences attached to this deadline &mdash; no fines or jail time for anyone, not even a requirement that some assistant secretary of defense read Accounting for Dummies and turn in a three-page book report to the U.S. comptroller general.
The Pentagon&rsquo;s ham-fisted attempts to meet the deadline became boondoggles of their own: New bookkeeping systems were planned, only to be canceled later &mdash; often after $1 billion or more was spent on each.
By the end of 2013, the Pentagon&rsquo;s Defense Finance and Accounting Service revealed that the total amount of transactions with no paper or electronic trail&hellip; going back to the original 1996 deadline set by Congress&hellip; had swelled to $8.5 trillion.
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> Beyond 2013, we don&rsquo;t even have any reliable totals of untracked transactions to work with.
In 2016, a Pentagon inspector general report came up with a figure of $6.5 trillion for the Army alone.
In 2017, Michigan State economist Mark Skidmore took a stab. Together with a former assistant secretary of Housing and Urban Development, Catherine Austin Fitts, they reviewed both the Pentagon and HUD.
Between the two agencies, covering the years 1998&ndash;2015, they concluded the total in &ldquo;undocumented adjustments&rdquo; was $21 trillion.
Skidmore first revealed his findings during the USAWatchdog podcast on Dec. 3, 2017.
Coincidentally or not, the Pentagon announced new-and-improved audit plans four days later.
So there&rsquo;s your context for the Pentagon having failed an audit for the last seven years. The first audit didn&rsquo;t even take place until 21 years after the original deadline set by Congress.
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> &ldquo;A successful audit of the Pentagon would be a monumental victory for what&rsquo;s left of American democracy. It may also prove to be a bridge too far for Trump,&rdquo; writes retired Air Force Lt. Col. and history professor William Astore.
&ldquo;The National Security State is America&rsquo;s unofficial fourth branch of government and arguably its most powerful. It is a colossus that hides malfeasance and corruption behind a &lsquo;top secret&rsquo; security classification. It deters and prevents efforts at transparency by crying that those who try to expose its crimes are endangering national security. It expects your obedience and praise, not your questions and criticism.&rdquo;
But the same could be said of the U.S. Agency for International Development &mdash; over which the DOGE boys have run roughshod.
On the other hand, as we&rsquo;ve pointed out regularly, Musk is himself a Pentagon contractor &mdash; SpaceX collecting $5.32 billion since 2008, according to a recent USA Today analysis.
For a long time, we said that if you&rsquo;re willing to hold your nose, the defense sector is a surefire winner. But that hasn&rsquo;t been the case since the market&rsquo;s COVID crash five years ago; yes, defense posted a big gain, but you&rsquo;d have done even better sitting in an S&amp;P 500 index fund.
While the DOGE situation shakes out, we&rsquo;d advise steering clear of broad defense-sector ETFs like XAR and ITA. Of course, if individual defense stocks are recommended in a Paradigm paid advisory you subscribe to, those have been thoroughly vetted for potential to outperform.
And rest assured we&rsquo;ll stay on top of the Pentagon audit &mdash; because the mainstream is sure to forget about it as soon as the next shiny object comes along.
<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-2-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-2_2x-new.png 2x" alt="2" width="37" /> Ron Paul at the Fed?
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />In other DOGE-adjacent news, Musk seems warm to the notion of having former Rep. Ron Paul lead an audit of the Federal Reserve.
<img class="aligncenter" src="https://images.ctfassets.net/vha3zb1lo47k/6Zlb93zIi5714SUdTgmUoC/2bda5c0121b9cac4187e6fa5e1a8ff3d/Liam-tweet.png" alt="liam Tweet" width="540px" />
&ldquo;This will be great,&rdquo; Musk subsequently posted on X.
Also, in response to a suggestion from Sen. Mike Lee (R-Utah) that Paul be made the next Fed chair, Musk said, &ldquo;That would be amazing.&rdquo;
No response from Paul yet, but his longtime aide Daniel McAdams has reposted much of this activity &mdash; we can only assume approvingly.
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> When he was still in Congress, Paul briefly got traction with a proposal to audit the Fed. This was in the years after the 2008 financial crisis and the Fed&rsquo;s alphabet-soup rescue packages &mdash; CPFF, TALF and so on &mdash; for the big banks.
We still don&rsquo;t have the full picture of what the Fed did. After a freedom-of-information lawsuit, Bloomberg News concluded the Fed committed nearly $8 trillion to shore up U.S. and foreign financial institutions.
The watchdog group Better Markets came up with an even more stark conclusion: &ldquo;At least $29 trillion was lent, spent, pledged, committed, loaned, guaranteed and otherwise used or made available to bail out the financial system during the 2008 financial crash&hellip; This was a stunning violation of the most basic rule of capitalism, applicable to virtually every other business in America: Failure leads to bankruptcy.&rdquo;
But the deep state&rsquo;s representatives in Congress stymied Paul with all their might. In the House, Rep. Mel Watt (D-North Carolina) gutted Paul&rsquo;s audit-the-Fed bill. (Watt was subsequently appointed by Barack Obama to run the Federal Housing Finance Agency.)
In the Senate, the dirty work was done by Bernie Sanders &mdash; watering down the legislation in one of his periodic attempts to prove to Democratic Party bigwigs that he won&rsquo;t rock the boat at moments when it really counts.
&ldquo;I'm not a bit surprised that the Federal Reserve got to the Senate,&rdquo; Paul said at the time. &ldquo;This is so disappointing to me that this happened, especially since for months now I've worked with Bernie on this.&rdquo;
Anyway&hellip; we&rsquo;ll keep tabs on this audit effort as well. On to the markets today&hellip;
<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-3-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-3_2x-new.png 2x" alt="3" width="37" />Mr. Market Absorbs Tariff Shock
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />Wall Street is handling the latest weekend tariff shock much better than was the case a week ago today.
Last Monday brought a minor freakout with the Trump administration imposing 25% tariffs on Canada and Mexico &mdash; and a weak relief rally after those tariffs were suspended for 30 days.
Today, the market is shrugging off news that Trump will impose a 25% tariff on all steel and aluminum imports.
At last check, all the major U.S. stock indexes are in the green &mdash; the S&amp;P 500 up nearly three-quarters of a percent to 6,067.
Gold has begun a new week powering to record highs, up 1.5% and past $2,900 for the first time. But in a concerning development, silver isn&rsquo;t keeping pace. Silver is up 0.6% and can&rsquo;t even cross the $32 mark. Silver has to outperform gold on a sustained basis &mdash; not just a day or two &mdash; if this precious metals rally is going to have legs.
Crude is starting the week up nearly 2% to $72.40. Bitcoin is mired just over $97,000.
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> For all the chop in the stock market in recent weeks &mdash; the tariff scare, the DeepSeek scare, etc. &mdash; the overall trend remains &ldquo;up and to the right.&rdquo;
&ldquo;A series of higher highs and higher lows hugging a well-defined trendline carve out a picture-perfect uptrend,&rdquo; says Paradigm chart hound Greg Guenthner.
<img class="aligncenter" src="https://images.ctfassets.net/vha3zb1lo47k/wra4m0wS9yHrVlNPEvHeZ/8d8cdf3beeb2ba61850a5e85b7efa420/2.10_5_Bullets_Chart2.png" alt="up and to the right" width="540px" />
For the record, the S&amp;P 500 is only 0.8% below its record close on Jan. 23 &mdash; less than three weeks ago. The Dow is likewise within spitting distance of an all-time high. Even the Nasdaq-100 is less than 2% off its record &mdash; &ldquo;not too shabby,&rdquo; Greg says, &ldquo;considering the DeepSeek sell-off.
&ldquo;I struggle to humor a bearish outlook,&rdquo; he goes on, &ldquo;when the averages are challenging all-time highs and investors are being rewarded for buying the dip. Of course, that will change if and when the data supports a potential bearish reversal.
&ldquo;A trendline break will be the first sign. So far, it&rsquo;s nowhere to be seen.&rdquo;
<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-4-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-4_2x-new.png 2x" alt="4" width="37" />Jobs Postscript
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> An important follow-up to the monthly job numbers mentioned in Friday&rsquo;s edition&hellip;
Yes, the annual revisions show nearly 600,000 fewer jobs were created than first thought during a 12-month span. But there&rsquo;s also a discouraging development in the wage data, as noticed by Heritage Foundation economist E.J. Antoni&hellip;
<img class="aligncenter" src="https://images.ctfassets.net/vha3zb1lo47k/2Sipdrwd3QSaZwjBsR6hWC/c969005d73b4c999eeea582e9e2752d1/EJ-tweet.png" alt="EJ Tweet" width="540px" />
Yeah, no wonder legions of everyday people <a href="https://paradigmpressroom.com/post/inflation-is-censored">didn&rsquo;t want to hear it</a> from Democrats and the media that the economy was awesome and they had nothing to complain about&hellip;
<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-5-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-5_2x-new.png 2x" alt="5" width="37" />An Update: &ldquo;You&rsquo;ll Own Nothing and Be Happy&rdquo;
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />We&rsquo;re admittedly behind the curve in noticing this development&hellip; but Forbes has taken down its infamous 2016 article with the message broadly paraphrased as, &ldquo;You&rsquo;ll own nothing and be happy.&rdquo;
<img class="aligncenter" src="https://images.ctfassets.net/vha3zb1lo47k/5akr4C2NFYW0YErmQm7Crg/ae9b9984271a1a79bf16c4222081ee88/Forbes.png" alt="forbes" width="540px" /> <img class="aligncenter" src="https://images.ctfassets.net/vha3zb1lo47k/5L2IilceHJVZ40eSMx6IMV/b39dcb56bd443617dbef9d9498da28e4/Forbes2.png" alt="forbes" width="540px" />
The article was authored by a Danish politician, born in the late 1970s, named Ida Auken. She wrote it under the imprimatur of the World Economic Forum &mdash; years before COVID came along and the WEF&rsquo;s &ldquo;great reset&rdquo; agenda alarmed sensible people worldwide&hellip;
<img class="aligncenter" src="https://images.ctfassets.net/vha3zb1lo47k/3Sb0rNJbrFLjvxGcdhgdEl/e0d03f33df3258a30899cc506ab7580f/Schwab.png" alt="schwab" width="540px" />
&hellip; also becoming fodder for awesome memes&hellip;
<img class="aligncenter" src="https://images.ctfassets.net/vha3zb1lo47k/4DI1cSc0IKusPdXWwdO1Ap/f126ed619dce3249f281795d7fd76b55/villian.png" alt="villian" width="450px" />
Anyway, I ran across a screenshot of the article this morning &mdash; and a link, but not to the original post at Forbes. (Nothing completely disappears from the internet; the article is archived for all time <a href="https://archive.ph/ln6m7">at this link</a>.)
Wandering through the Wayback Machine this morning was painfully slow&hellip; but I was able to determine Forbes took the article down sometime in mid-August 2023.
Why, I have no idea &mdash; but the important thing is that it can still be found online, a living testament to the unbounded ambition of the world&rsquo;s control freaks and power trippers. Never forget.
Best regards,
<img class="aligncenter" src="https://media.paradigmpressgroup.com/signatures/dave-gonigam.png" alt="Dave Gonigam" width="250px" align="left" />
Dave Gonigam Managing editor, Paradigm Pressroom's 5 Bullets

shutterstock 1071086909

As if reading your editor’s protest in Friday’s edition — whether Elon Musk’s DOGE would be unleashed at the Pentagon — Trump said, “Let’s check the military.”

Elon vs. the Pentagon

5 bullets hero War between Russia and Ukraine

shutterstock 2211949229

OK, with the benefit of a few days’ hindsight, we can take stock of where things stand with the trade wars. 

Battle Lines in the Trade War

<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-1-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-1_2x-new.png 2x" alt="1" width="37" />Major Trump Priority (You Haven&rsquo;t Heard About This One)
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />It&rsquo;s one of the major agenda items of the Trump 47 presidency &mdash; even though the White House is saying precious little about it.
As Paradigm&rsquo;s macroeconomics maven sees it, Trump aims to bring an end to the currency war that&rsquo;s upended markets and economies since 2010.
If you&rsquo;re scratching your head &mdash; What currency war? How does a currency war work? Why does Trump want to end it? &mdash; today&rsquo;s a great day to catch up. Events are moving quickly &mdash; and so should you.
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />It&rsquo;s easy to lose track, even for someone like me who&rsquo;s been working with Jim for over a decade: We remain in the midst of a currency war.
Jim literally wrote the book on currency wars &mdash; his first book, 2011&rsquo;s Currency Wars.
&ldquo;Currency wars,&rdquo; he wrote in that volume, &ldquo;are fought globally in all major financial centers at once, 24 hours per day, by bankers, traders, politicians and automated systems &mdash; and the fates of economies and their affected citizens hang in the balance.&rdquo;
The book opens in dramatic fashion &mdash; with the Pentagon&rsquo;s first-ever &ldquo;financial war game,&rdquo; held even as the global financial crisis was still raging in early 2009.
Jim walked senior military leaders through a two-day exercise. At the conclusion of the exercise, the Russians and Chinese teamed up on a new gold-backed currency that muscled aside the U.S. dollar as the globe&rsquo;s main reserve currency.
To say the other participants in the exercise were gobsmacked would be an understatement. Sixteen years later, it&rsquo;s starting to look eerily prescient.
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />As Jim laid out in the book, the present currency war began in 2010&hellip; and marks the third such conflict in a century&hellip;
<blockquote>Currency War I (1921&ndash;1936): It begins with Germany's epic devaluation of the mark. Soon, everyone is devaluing. By 1933, FDR devalued the dollar against gold, from $20.67 an ounce to $35. The war ends in 1936 with a three-way truce between the United States, Britain and France. Alas, Germany was not a party to the agreement, and a shooting war was underway by 1939</blockquote>
<blockquote>Currency War II (1967&ndash;1987): It begins with Great Britain devaluing the pound against the dollar. Soon the dollar is under pressure, and in 1971, Nixon cuts the dollar's last tie to gold &mdash; sending the greenback on a roller coaster ride for the next 16 years. The Plaza Accord of 1985 and the Louvre Accord of 1987 lead to a new equilibrium</blockquote>
<blockquote>Currency War III (2010&ndash;present): It begins with President Obama announcing plans to double U.S. exports in five years. The only way to make that happen is to cheapen the currency. Months later, Brazil's finance minister declares, "We're in the midst of an international currency war, a general weakening of currency."</blockquote>
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />&ldquo;The traditional and fastest way to increase exports had always been to cheapen the currency,&rdquo; Jim explained in Currency Wars.
And everyone around the world in 2010 knew it. Cheapening the currency makes your exports less expensive for foreign buyers.
As it happens, Obama&rsquo;s National Export Initiative &mdash; the act that started this dirty snowball rolling downhill &mdash; fell way short of its goals. Instead of doubling by 2015, U.S. exports grew only 50%.
We recount this history, both ancient and recent, to jog your memory if you&rsquo;re a longtime reader &mdash; or clue you in if you&rsquo;re a newer one.
Maybe you&rsquo;re a Rickards&rsquo; Strategic Intelligence subscriber &mdash; but you became familiar with his work only in the last year through his &ldquo;Election Meltdown&rdquo; thesis. Maybe you didn&rsquo;t even know until today that we&rsquo;re in the midst of a currency war.
But no matter how long you&rsquo;ve been a Paradigm Press reader, you should know that&hellip;
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />The previous two currency wars lasted 15&ndash;20 years. We&rsquo;re now into Year 16 of the current one. And Jim says Trump aims to wind it down during his second term. Maybe even this year.
Tonight Jim is hosting an exclusive streaming event in which he&rsquo;ll reveal a step Trump has already taken that could end the war once and for all.
He&rsquo;ll also lay out what it means for your investments &mdash; stocks, gold, crypto, even your cash in the bank.
And he&rsquo;ll reveal a strategy that could generate gains of 1,000% or more over the next year &mdash; risking less money and generating much higher profits than most people do trading stocks.
If you&rsquo;re already a subscriber to Jim&rsquo;s premium advisory The Situation Report, you&rsquo;re already familiar with the broad outlines of Jim&rsquo;s thesis and his approach.
But if not, you really owe it to yourself to check out this event. If you currently subscribe to Rickards&rsquo; Strategic Intelligence, we&rsquo;ll send you a link at 7:00 p.m. EST. If you don&rsquo;t subscribe to a Rickards publication, you&rsquo;ll get access to a replay of the event as soon as it&rsquo;s over. Watch your inbox&hellip;
<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-2-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-2_2x-new.png 2x" alt="2" width="37" />Gold: Central Banks Continue Loading Up
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />The globe&rsquo;s central banks continue &ldquo;backing up the truck&rdquo; with gold purchases &mdash; putting a floor under the gold price.
The World Gold Council is out with its quarterly and annual assessments of global gold trends. For a third year running, central banks around the world have purchased over 1,000 metric tons &mdash; more than doubling the annual average during the 2010s.
<img class="aligncenter" src="https://images.ctfassets.net/vha3zb1lo47k/57G6GhLFwBlKlfMOguqmG1/180019b15f70f77a8bbc258f1f0b31a9/2.6_5Bullets_Chart.png" alt="Central Banks Back Up the Truck" />
At the risk of repeating ourselves, it&rsquo;s no coincidence the buying spree began in 2022. That&rsquo;s when Russia invaded Ukraine and the Biden administration responded with unprecedented sanctions &mdash; freezing the dollar-based assets of Russia&rsquo;s central bank.
Leaders throughout the developing world wondered if they might be in for the same treatment if they ran afoul of Washington&rsquo;s dictates.
So they turned to gold. As our Jim Rickards keeps emphasizing, &ldquo;Gold is a physical non-digital asset that cannot be stolen, frozen or seized provided it is in safe storage.&rdquo;
That said, the leading gold purchaser in 2024 is one of Washington&rsquo;s NATO allies, Poland &mdash; adding 90 metric tons to its reserves. Turkey comes in second place with 75 metric tons.
In third and fourth place are two of the BRICS nations &mdash; India and China.
Officially, China&rsquo;s gold stash is sixth largest in the world at 2,264.3 metric tons. (The United States is still No. 1 at 8,133.5.) But unofficially, Jim figures it&rsquo;s at least twice that size.
Combined with Russia&rsquo;s stash (fifth largest in the world) and India&rsquo;s (eighth largest), the BRICS are developing an alternative payments system &mdash; bypassing the dollar &mdash; with gold as its foundation.
As Jim said in a special 5 Bullets briefing last December, &ldquo;That&rsquo;s good news for gold investors because the BRICS and other nations will have to acquire gold themselves (which they are already doing) in order to participate.
&ldquo;Other investors who buy gold are along for the ride and it&rsquo;s a ride that will lead to higher dollar prices for gold over time.&rdquo;
<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-3-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-3_2x-new.png 2x" alt="3" width="37" />The Markets Today
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />The shadowy forces that show up now and then to slam down the gold price made an appearance today &mdash; before beating a hasty retreat.
At one point this morning, gold was down $40 from yesterday&rsquo;s record levels of $2,870. But at last check, it&rsquo;s recovered more than half those losses &mdash; the bid $2,855. Silver got slammed below $32, but it&rsquo;s back to $32.15. The HUI index of mining stocks is also hanging tough at 327.
Not much excitement in the stock market &mdash; with none of the major indexes moving more than a quarter percent one way or another. At 6,075 the S&amp;P 500 is about 0.7% below its record close set on Jan. 23. Later today another &ldquo;Magnificent 7&rdquo; company &mdash; Amazon &mdash; will report its quarterly numbers.
At $71.22, a barrel of West Texas Intermediate crude is still near its 2025 lows.
No joy in crypto-land, with Bitcoin clinging to the $97,000 level.
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />About the monthly job numbers, due out tomorrow&hellip;
It being the first Friday of February, the Bureau of Labor Statistics will issue not only the January job figures&hellip; but also revisions to the previous 12 months&rsquo; figures.
For whatever it&rsquo;s worth, the buzz we&rsquo;re hearing is that this year&rsquo;s revisions will be to the downside &mdash; and the biggest since 2009.
If true, that would potentially undercut Wall Street&rsquo;s &ldquo;soft landing&rdquo; narrative &mdash; the idea that the Federal Reserve&rsquo;s cycle of interest rate increases during 2022&ndash;23 did not result in any damage to the economy during 2024.
Jim Rickards has been on record for months anticipating a recession early in Trump&rsquo;s second term. Steep downward revisions to the job numbers tomorrow just might bring the mainstream around to that opinion as well.
Just a heads-up. We&rsquo;ll dig into the numbers tomorrow&hellip;
<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-4-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-4_2x-new.png 2x" alt="4" width="37" />Comic Relief, DOGE Edition
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />We concede we haven&rsquo;t spent much time in recent days on the efforts of DOGE to cut government spending.
In large part that&rsquo;s because lots of other people are on the case. That said, there&rsquo;s also a blizzard of nonsense from people feeding their confirmation biases. For instance, the U.S. Agency for International Development did send money to Jeffrey Epstein &mdash; <a href="https://x.com/Ike_Saul/status/1887261335144308949" target="_blank" rel="noopener">but not that Jeffrey Epstein</a>.
Anyway, a chuckle for the day&hellip;
<img class="aligncenter" src="https://images.ctfassets.net/vha3zb1lo47k/59JWQDLkt16t6EvGOi4PUl/eaa931068c8e59a5cde0ad42461c3c3d/simpsons_meme.png" alt="simpsons meme" />
<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-5-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-5_2x-new.png 2x" alt="5" width="37" />&ldquo;Has Capitalism Been Repealed?&rdquo;
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />&ldquo;Concerning tariffs and illegal drugs: Has capitalism been repealed when it comes to stuff that does us no good?&rdquo; a reader writes.
&ldquo;The wars on drugs, on guns, on alcohol, on fentanyl or whatever have all failed since the country was founded.
&ldquo;To believe you can win a war against illegal drugs is to believe you can suspend capitalism, where people who really want something will find a way to get it.
&ldquo;The drug war has been a 100-year failure, and always will be a failure. So will making guns and liquor illegal. Just encourages people to do more work to get them. Wastes of time.&rdquo;
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />&ldquo;I don't get some people's thinking,&rdquo; counters another &mdash; responding directly to the mailbag section <a href="https://paradigmpressroom.com/post/the-coming-border-war" target="_blank" rel="noopener">in Wednesday&rsquo;s edition</a>.
&ldquo;While it is true that the use of any drug covers up some ill a person is suffering (although many addicts got their first dose by force or were youthfully experimenting and became addicted), each user has to accept responsibility for that. The more people that use drugs, the more it reflects on society and points to societal ills.
&ldquo;You cited readers (and you apparently agree) that think the U.S. government has no business trying to stop others from making the drugs that come over here. What? That's such a ridiculous notion.
&ldquo;We are a society. Like it or not, we are. As part of the society, we have a duty &mdash; yes, a duty &mdash; to work to make that society better, and at least protect it. It does not make our society better or protect it to permit millions of people to die (including those that get killed by people to get their drugs) while we &lsquo;fix&rsquo; the ills of society, which are never-ending, especially when we have libertarians that have the perspective that society's ills are not their problem along with a bunch of other people with selfish philosophical worldviews.
&ldquo;Again, it's not OK to let millions die because &lsquo;it's not my individual problem.&rsquo; Rightly constructed government is society's way of acting collectively. Thus, society, i.e., government, has a right and the duty to repel threats to its health. Many say that it's too expensive or it's too hard. So? What difference does that make? Sure we can argue about how we do it, but to suggest that doing it is a problem, while allowing millions of our own people, our kids and neighbors, to die, is the essence of moral nihilism.&rdquo;
Dave responds: President Nixon declared &ldquo;war on drugs&rdquo; in June 1971. It&rsquo;s worked out about as well as the war on poverty, the war on &ldquo;terror&rdquo; and all the other metaphorical wars that politicians have waged in the decades since.
It is largely owing to the war on drugs that the United States imprisons a larger percentage of its population by far than nearly every other country in the world. (We were tops for decades until we were overtaken by El Salvador in recent years.)
And yet illegal drug use and trafficking continue unabated. Amazing how that works.
Maybe it&rsquo;s time to try another approach?

shutterstock 2425818403 (1)

It’s one of the major agenda items of the Trump 47 presidency — even though the White House is saying precious little about it.

Trump’s Currency War

<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-1-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-1_2x-new.png 2x" alt="1" width="37" />A Little Calculated Risk Goes a Long Way
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />&ldquo;Imagine making $50,000 in one day from a small investment. It's happening right now on Wall Street,&rdquo; says Paradigm&rsquo;s iconoclast investor James Altucher.
&ldquo;Welcome to the world of 0DTE options &mdash; the latest craze that&rsquo;s turning the stock market into a high-stakes casino.
&ldquo;These &lsquo;zero days to expiration&rsquo; trades have exploded in popularity, now making up over half of all options activity on major market indexes.
&ldquo;But before we dive into the adrenaline-pumping world of same-day options, let's break down how options actually work&hellip;
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> &ldquo;Think of an option like a coupon for stocks. You pay a small fee upfront for the right to buy or sell shares at a specific price by a certain date,&rdquo; James explains.
&ldquo;Traditionally, investors bought options that expired weeks or months in the future.
&ldquo;Now Wall Street has discovered a way to compress all that excitement into a single trading day.
&ldquo;These 0DTE options are like scratch-off lottery tickets for the stock market. They're cheap to buy &mdash; often just a few dollars each.
&ldquo;If the market moves in your favor, those dollars can multiply into hundreds or even thousands.
&ldquo;Right now, you can only trade daily options on certain index funds that track the stock market, like the S&amp;P 500.
&ldquo;But that's about to change&hellip;
&ldquo;Wall Street is gearing up to bring daily options to individual stocks like Tesla and Nvidia as soon as next year,&rdquo; says James. &ldquo;The potential returns are eye-popping.
&ldquo;A small move in the right direction can turn $100 into $1,000 in minutes.
&ldquo;Get really lucky, and you might turn a few thousand into enough for a down payment on a house.
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />But there's a dark side to this story. These 0DTE trades can vaporize your money faster than a Vegas slot machine,&rdquo; James notes. &ldquo;We're not talking about losing 20% or even 50%.
&ldquo;When 0DTE options go wrong, they often go to zero. Complete loss. No refunds.
&ldquo;It happens in the blink of an eye. A five-minute market swing in the wrong direction can wipe out your entire investment.
&ldquo;The temptation to recover losses can be overwhelming,&rdquo; he says.
&ldquo;Many traders fall into the trap of doubling down after a loss&hellip; then doubling down again&hellip; and again&hellip; until there's nothing left to double down with.
&ldquo;So why would anyone take these risks? Because the wins can be spectacular.
&ldquo;Social media is full of screenshots showing massive gains from tiny investments
&ldquo;But here's what the influencers don't show you: the losses.
&ldquo;A recent study by the London Business School found that individual options traders lost $2.1 billion in less than two years,&rdquo; James says.
&ldquo;The shorter the time frame, the bigger the losses.
&ldquo;Think of it this way: Would you bet your rent money on a coin flip?
&ldquo;Because that's essentially what 0DTE options are &mdash; except the odds are usually worse than 50/50.
&ldquo;Does this mean you should never trade 0DTE options? Not necessarily&hellip;
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> &ldquo;Used responsibly &mdash; with money you can afford to lose &mdash; these trades can be a small part of your investment strategy,&rdquo; James adds. &ldquo;The key word is &lsquo;small.&rsquo;
&ldquo;Treat them like lottery tickets, not your retirement plan.
<ul>
<li>&ldquo;Set strict limits on how much you'll risk</li>
</ul>
<ul>
<li>Never trade with money you need for bills</li>
</ul>
<ul>
<li>And most importantly, understand that these are not investments &mdash; they're speculative bets.&rdquo;</li>
</ul>
James concludes: &ldquo;0DTE options can add an exciting element to your investment strategy.
&ldquo;Think of them as the spice in your investment recipe &mdash; a little bit goes a long way.
&ldquo;Keep the majority of your portfolio in traditional investments,&rdquo; he recommends.
&ldquo;If you&rsquo;re the type of person who tends to go overboard with things, you might want to avoid them entirely.
&ldquo;But if you think you can handle trying your hand at Wall Street's fastest game, do it with clear eyes and strict limits.
&ldquo;Because sometimes,&rdquo; says James, &ldquo;a little calculated risk can lead to extraordinary rewards.&rdquo;
[NOTE: If 0DTE options aren&rsquo;t your speed, James says there&rsquo;s another subniche of the market that&rsquo;s not nearly as risky. But it CAN be just as lucrative.
And for a limited time, our customer service chief is offering access to <a href="https://pro.paradigm-press.info/m/2409557">James Altucher&rsquo;s new Beta Test group</a>&hellip; A group dedicated to trading one of the fastest-moving segments of the market.
Because of the high return potential of these trades (100% or more in as little as 24
hours), we are forced to keep this beta-testing group limited to James&rsquo; most dedicated readers.
That&rsquo;s why, right now, the door is only open to 250 new members&hellip;
And the door will CLOSE before the market opens this Thursday, Feb. 6.
<a href="https://pro.paradigm-press.info/m/2409557">Here is your exclusive invite link.</a> (Please do not share it.)
REMEMBER: This opportunity closes this Thursday at 9:29 a.m. EST.]
<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-2-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-2_2x-new.png 2x" alt="2" width="37" />Making Gold Great Again
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />&ldquo;Gold is hitting record highs. And if the shiny yellow rock&rsquo;s advance measures up to past secular bulls, this rally has legs!&rdquo; exclaims Paradigm&rsquo;s chief market analyst Greg Guenthner.
&ldquo;Check out this gold chart zoomed out to the mid-1970s&hellip;
<img class="aligncenter" src="https://images.ctfassets.net/vha3zb1lo47k/5ha9kjeP8KaSWw0NLqJgQj/3f4b642409654094dcd046e827f6d402/FMF_5Bullets_Chart_0205.jpg" alt="gold's roaring 20s" width="540px" />
&ldquo;Notice the explosive rallies followed by prolonged trendless markets,&rdquo; Greg says.
&ldquo;Today, gold is printing record highs. But it&rsquo;s up a mere 150% off its 2015 low compared to the 650%-plus gains of previous bull cycles.
&ldquo;My best guess as to why gold hasn&rsquo;t hit $5K lands somewhere between &lsquo;no one is paying attention&rsquo; and &lsquo;no one wants a dumb yellow rock,&rsquo;&rdquo; Greg says.
&ldquo;However, rising gold prices will eventually capture more eyes creating a positive feedback loop as more investors turn to gold &mdash; ultimately Making Gold Great Again.
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> &ldquo;Now is the time to consider precious metals, especially mining stocks. Here&rsquo;s why&hellip;
&ldquo;Plenty of solid businesses operate within the metals and mining space,&rdquo; Greg says.
&ldquo;Alamos Gold, Stock B (AGI) touts a $9 billion market cap. It&rsquo;s also been around since 2003, which means it survived a full cycle. I like that! And of course, it&rsquo;s posting all-time highs.
&ldquo;You could also keep it classy by trading one of the bellwethers, like Agnico Eagle Mines (AEM),&rdquo; Greg says.
&ldquo;It broke out of a multi decade base last week to a new record high. Plus, it&rsquo;s mined metals and minerals since 1957 and carries a market cap of $47.5 billion.
&ldquo;If you&rsquo;re feeling lucky and want to take a swing with a five-letter ticker, you will find plenty of gold miners to choose from.
&ldquo;I lean toward the larger and more established companies,&rdquo; he says. &ldquo;But Wesdome Gold Mines (WDOFF) is the exception as it teases fresh two-year highs.
&ldquo;Could WDOFF post NVDA-like gains? It might if gold continues to rally. Mining stocks become the ultimate speculative growth trade during gold bull markets. 
&ldquo;Bottom line: Taking a gold position today is taking a position in near-term strength,&rdquo; Greg says. &ldquo;It&rsquo;s buying an asset increasing in value &mdash; before the crowd shows up and spoils the fun.&rdquo;
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> Gold continues its ascent into record-breaking territory today: The yellow metal&rsquo;s up 0.55% to $2,891.60 per ounce. 
At the same time, silver is losing ground, down 0.10%, just under $33. Also in the commodities complex, oil is down 2.15% to $71.11 for a barrel of WTI.
As for stocks, the Nasdaq is getting dragged by Alphabet (GOOG) which whiffed on cloud revenue in its earnings report yesterday; shares are down 7% at the time of writing. At the moment, however, the tech-heavy Nasdaq is slightly in the green, clocking in at 19,655.
Of the three major U.S. stock indexes, the Big Board is faring best, up 0.25% to 44,670. The S&amp;P 500, in the meantime, is up 0.15% to 6,050.
Checking on the crypto market, Bitcoin&rsquo;s currently trading at $97,862.20, down 0.52% in the last 24 hours. But Ethereum is priced at $2,717.51, up 1.75%.
<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-3-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-3_2x-new.png 2x" alt="3" width="37" />&ldquo;The Most Important Tech Deal of 2025&rdquo;
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />&ldquo;The biggest tech deal in history might be going down as we speak,&rdquo; reports Paradigm&rsquo;s science-and-technology investor Ray Blanco.
In fact, rumors are swirling about a possible acquisition of Intel (INTC) &mdash; involving Elon Musk &mdash; which could reshape the American technology landscape.
Intel has seen its stock price drop 50% over the past year, making it a potential takeover target. Musk&rsquo;s interest in the company likely stems from the role Intel chips could play in his various ventures, including Tesla, SpaceX and xAI.
&ldquo;Right now, Musk relies on TSMC and Samsung to supply the silicon for his supercomputers. With Intel, he&rsquo;d control his own destiny,&rdquo; says Ray.
&ldquo;Intel isn't just another chipmaker,&rdquo; he says. &ldquo;It's America's semiconductor crown jewel, with manufacturing capabilities that could be transformative in the right hands.
&ldquo;At $94 billion, this would be one of the largest acquisitions in tech history. But Musk has shown he can raise capital like no one else.&rdquo;
Ray&rsquo;s takeaway? &ldquo;We're witnessing the opening moves of what could be the most important tech deal of 2025.&rdquo; Stay tuned&hellip;
<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-4-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-4_2x-new.png 2x" alt="4" width="37" />MoviePass: Retribution and Revival
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />Earlier this year, Ted Farnsworth, former CEO of MoviePass, pleaded guilty to defrauding investors. He faces up to 25 years in prison for securities fraud and conspiracy to commit securities fraud
Farnsworth, who led Helios &amp; Matheson Analytics when it acquired a majority stake in MoviePass, implemented the $9.95 plan in 2017, initially attracting over 3 million subscribers. The MoviePass subscription promised unlimited theater viewings per month for less than the average single-ticket price.
No surprise, this model proved unsustainable, causing significant financial losses. So the service rapidly implemented changes &mdash; raising prices, creating a convoluted tiered system and adding restrictions on movie choices and showtimes.
As losses mounted, MoviePass experienced major service blackouts because Farnsworth allegedly instructed employees to prevent subscribers from using the service they paid for.
Eventually, the market lost all confidence in Helios &amp; Matheson Analytics. Despite public claims of profitability through data monetization, the Department of Justice found that MoviePass lacked the capability to do so.
Even after MoviePass&rsquo; bankruptcy, Farnsworth reportedly employed similar deceptive practices at digital media company Vinco Ventures.
Farnsworth will be sentenced for his crimes later this year. Meanwhile, MoviePass has been revived under its original founder, Stacy Spikes, with a new business model. The company announced its first profitable year in 2023 &mdash; though users still report occasional service issues.
<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-5-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-5_2x-new.png 2x" alt="5" width="37" />The Newsletter Taking Over Small-Town Inboxes
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />&ldquo;On first glance, Good Day Fort Collins appears to be a standard local news roundup,&rdquo; featuring stories about restaurant openings and record-breaking snowfalls. 
However, this seemingly innocuous digital newsletter is part of a much larger network of AI-generated content spanning 355 cities and towns across the U.S.
The newsletters, all part of Good Daily Inc., share identical testimonials, branding and mission statements throughout different locations.
The founder and sole operator, Matthew Henderson, uses automation and large language models (LLMs) to curate, summarize and distribute content from local news sources.
While Henderson claims to support local journalism, his approach faces criticism. According to Rodney Gibbs of the National Trust for Local News: &ldquo;[Henderson&rsquo;s] claim is, frankly, horse****. The suggestion that he&rsquo;s helping news deserts is absurd.&rdquo;
Instead, critics argue that Good Daily exploits the work of local outlets without providing significant benefits in return. Plus, the newsletters lack transparency. They don&rsquo;t, for instance, disclose that they are AI-generated.
While Good Daily accumulates revenue through reader donations and advertising, its &ldquo;give back&rdquo; program, promising to donate 10% of profits to local nonprofits, seems to be little more than a bait-and-switch scheme.
Despite the controversies, some readers find value in the service. As one Fort Collins resident comments: &ldquo;I haven't unsubscribed yet because it&rsquo;s the only local news I get.&rdquo;
But that&rsquo;s assuming the &ldquo;news&rdquo; is accurate&hellip;
The 5 Bullets&rsquo; pledge to you? Actual human eyes, ears and brains behind every issue. No fabricated testimonials. And absolutely zero &ldquo;set it and forget it&rdquo; commentary.
Best regards,
<img class="aligncenter" src="https://media.paradigmpressgroup.com/signatures/emily-clancy.png" alt="Emily Clancy" width="250px" align="left" />
Emily Clancy Associate editor, Paradigm Pressroom's 5 Bullets

shutterstock 737564698

“Welcome to the world of 0DTE options — the latest craze that’s turning the stock market into a high-stakes casino,” says James Altucher. 

0DTE

<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-1-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-1_2x-new.png 2x" alt="1" width="37" />The (New) Mexican-American War
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />The trade war with Mexico is on hold. A shooting war, however, might be imminent.
We&rsquo;ll get to the tariff situation shortly. But another matter takes precedence this morning.
&ldquo;I expect a shooting war between Mexico and the U.S. in the near future,&rdquo; said Jim Rickards yesterday in a brief note to Rickards&rsquo; Strategic Intelligence readers.
&ldquo;The Mexican drug cartels are planning to use drones for aerial attacks on Immigration and Customs Enforcement. This is war. Trump, [Secretary of State Marco] Rubio and [Defense Secretary Pete] Hegseth won't put up with it for much longer.&rdquo;
I haven&rsquo;t had a chance to draw out Jim on the topic yet&hellip;
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> But it&rsquo;s not an outlandish prediction in light of recent events&hellip;
<ul>
<li>Monday, Jan. 27: The State Department warned against travel to the area around Reynosa, Mexico &mdash; just across the Rio Grande from McAllen, Texas &mdash; describing &ldquo;frequent gun battles occurring in and around Reynosa in the late night and early morning hours.&rdquo; There&rsquo;ve also been routine sightings of &ldquo;improvised explosive devices&rdquo; &mdash; or in plain English, roadside bombs</li>
</ul>
<ul>
<li>Yesterday: The U.S. consulate in Nuevo Laredo &mdash; on the other side of the Rio Grande from Laredo, Texas &mdash; reported several gunfights throughout the city. U.S. government personnel were advised to &ldquo;shelter in place.&rdquo;</li>
</ul>
And that&rsquo;s in just one Mexican state, Tamaulipas.
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> In his inauguration speech, Donald Trump promised to designate Mexican drug cartels as &ldquo;foreign terrorist organizations&rdquo; &mdash; presumably a first step toward military attacks on the cartels.
When he was still in Congress, Trump&rsquo;s national security adviser Mike Waltz sponsored a bill that would have authorized the use of force against the cartels.
Thing is, a battle with the cartels would be no cakewalk. Their capabilities are formidable &mdash; drones, roadside bombs, surface-to-air missiles.
It would be like Afghanistan &mdash; but on America&rsquo;s doorstep, says Cato Institute scholar Brandan Buck: &ldquo;Sending U.S. Special Operations into a direct confrontation with the Mexican cartels would pit them against a near-peer competitor, who, like the Taliban, would likely enjoy the direct or tacit support of the local populace and the luxury of hiding in punishing terrain.&rdquo;
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> A more sane approach was proposed yesterday by Sen. Mike Lee (R-Utah).
In a thread on X, Lee proposed a remedy laid out by the framers of the Constitution &mdash; that Congress grant &ldquo;letters of marque and reprisal.&rdquo;
"Letters of marque and reprisal,&rdquo; he said, &ldquo;are government-issued commissions that authorize private citizens (privateers) to perform acts that would otherwise be considered piracy, like attacking enemy ships during wartime. Privateers are rewarded with a cut of the loot they bring home.&rdquo;
How would it work here? "Congress could issue letters of marque and reprisal authorizing private security firms or specially trained civilians to intercept cartel operations, particularly those involving drug shipments or human trafficking across borders," Lee said. "Focus on disrupting supply lines, capturing high-value targets or seizing assets like boats, vehicles, cash, gold or equipment used in criminal activities."
The usual suspects in liberal media are dismissive &mdash; The Daily Beast, for example, calling it a &ldquo;crazy plan.&rdquo;
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> But is it crazier than the alternative?
The day after the 9/11 attacks in 2001, Rep. Ron Paul (R-Texas) proposed that Congress issue letters of marque and reprisal to bring Osama bin Laden and crew to justice.
&ldquo;When we retaliate for this horror we have suffered, we must be certain that only the guilty be punished,&rdquo; he said. &ldquo;More killing of innocent civilians will only serve to flame the fires of war and further jeopardize our security. Congress should consider its constitutional authority to grant letters of marque and reprisal to meet our responsibility.&rdquo;
Would it have worked? Maybe, maybe not. But we know for sure what did not work &mdash; 20 years of &ldquo;forever wars&rdquo; that killed over 7,000 U.S. troops&hellip; as well as 4.5 million foreigners (whose survivors hold a grudge against the U.S. government)... while adding $8 trillion to the national debt.
(Those figures come from the authoritative Costs of War Project at Brown University.)
We&rsquo;ll see what unfolds on the border in the weeks and months ahead. It&rsquo;s not headline news, not today &mdash; but that&rsquo;s all the more reason for us to give it top priority today.
<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-2-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-2_2x-new.png 2x" alt="2" width="37" />Trump&rsquo;s (Narrow) Tariff Window
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />Now for the tariff situation: &ldquo;There's a storm cloud with a silver lining to Trump's approach,&rdquo; says Dan Amoss, lead analyst for our Jim Rickards unit.
As we chronicled in real-time yesterday, Trump&rsquo;s threatened tariffs against Mexico are on hold for 30 days. After we hit the &ldquo;send&rdquo; button, Trump&rsquo;s threatened tariffs against Canada were also paused for a month. Both Ottawa and Mexico City have promised to beef up border security.
An added 10% tariff on Chinese goods, however, is taking effect today. Beijing has responded with a 15% tariff on selected U.S. goods.
With the last-minute climb-downs by both the Canadian and Mexican governments, there&rsquo;s a lot of &ldquo;winning&rdquo; gloating on social media.
But those &ldquo;wins&rdquo; are only temporary &mdash; which comes back to the uncertainty we mentioned yesterday and Friday.
&ldquo;The storm cloud,&rdquo; says Dan, &ldquo;is the disruption to status quo channels of trade, currency and capital movements that make it hard for businesses and households to plan. The uncertainty freezes activity, which in turn sets off a chain of events that could be unpleasant.&rdquo;
Thing is, it&rsquo;s that uncertainty that&rsquo;s the key to Trump&rsquo;s art-of-the-deal mindset. &ldquo;For Trump to keep winning, he needs to remain unpredictable and willing to do wild-man stuff,&rdquo; says Dan &mdash; &ldquo;to force an incentive on trade counterparties to be first in line to sue for peace to avoid the tariff &lsquo;stick.&rsquo;&rdquo;
The problem is when Trump&rsquo;s wins turn into corporate America&rsquo;s losses. &ldquo;Too much uncertainty for too long can do permanent damage to capital formation and employer-employee skill matches,&rdquo; says Dan. If Trump pushes his luck, Dan believes companies will pull in their horns the way they did during COVID, albeit to a lesser degree.
Solution: &ldquo;Trump should just make clear rules of the road, and business can adapt,&rdquo; Dan says. &ldquo;But timing is of the essence.
&ldquo;Trump will be a wild man for perhaps two&ndash;six months. Then he'll need to convey stability and vision for what (more or less) sustainable trade arrangements will be.
&ldquo;I'm rooting for Trump,&rdquo; Dan concludes &mdash; &ldquo;but the path is narrow and loaded with constraints and pitfalls.&rdquo;
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> Amid that backdrop this morning, the major U.S. stock indexes are in the green. But they&rsquo;re still below where they sat before the tariff news broke Friday afternoon.
The S&amp;P 500 is up a half percent and back over 6,000. At its peak on Friday, it was in record territory over 6,100.
Tariffs will presumably take a back seat to earnings as the week goes on. Google parent Alphabet will report its numbers after the close today &mdash; and Amazon on Thursday. At that point, six of the &ldquo;Magnificent 7&rdquo; names will have reported. (The seventh, Nvidia, releases its figures closer to the end of February.)
Precious metals continue to rally &mdash; and for once, it&rsquo;s silver and the mining stocks outpacing gold. The Midas metal is up nearly three-quarters of a percent to $2,834. But silver is up nearly 1.4%, touching the $32 level and challenging its mid-December highs. The HUI index of mining stocks is likewise challenging its mid-December peak at 320.
Crude has pulled back below $73. Crypto is stuck in the mud, Bitcoin under $100,000 and Ethereum a hair below $2,800.
<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-3-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-3_2x-new.png 2x" alt="3" width="37" />Will Ukraine Become &ldquo;Trump&rsquo;s War&rdquo;?
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> It seems Donald Trump is determined to keep the Russia-Ukraine war going to assure U.S. access to rare earth elements.
Of course, neither mainstream nor alternative media are framing it that way, so it falls to us.
&ldquo;We&rsquo;re looking to do a deal with Ukraine where they&rsquo;re going to secure what we&rsquo;re giving them with their rare earth and other things,&rdquo; Trump told reporters in the Oval Office yesterday. &ldquo;We want a guarantee. We&rsquo;re handing them money hand over fist.&rdquo;
In case you&rsquo;re a newer reader, rare earths are a group of essential minerals used in everything from your smartphone to hybrid car batteries to guided missile systems. They&rsquo;re not really &ldquo;rare&rdquo; except in the sense that miners have to sift through ungodly quantities of rock and dirt to get at them.
Late last year, Sen. Lindsey Graham (R-South Carolina) said he expected Trump to &ldquo;do a deal to get our money back, to enrich ourselves with rare earth minerals&hellip; Ukraine&rsquo;s ready to do a deal with us, not the Russians. So it&rsquo;s in our interest to make sure that Russia doesn&rsquo;t take over the place.&rdquo;
Here&rsquo;s the problem: Many of Ukraine&rsquo;s rare earth deposits lie in the east of the country &mdash; territory populated by Russian speakers and now controlled by Russia. Russia will not give up this territory without a fight to the death.
Is that what Trump is willing to take on?
As Jim Rickards told his readers yesterday, &ldquo;The choice for Trump is whether he wants the war to end quickly (mostly on Putin&rsquo;s terms) or wants it to continue in which case it will quickly become known as &lsquo;Trump&rsquo;s War.&rsquo;&rdquo;
Reminder: Trump&rsquo;s Ukraine envoy, retired Lt. Gen. Keith Kellogg, is tasked with reaching a settlement to the war by the end of April.
<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-4-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-4_2x-new.png 2x" alt="4" width="37" />Mailbag I: Tariffs and the Elites
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />&ldquo;Isn't it interesting that taxes (in the form of tariffs) are the leading policy to make America great again?&rdquo; a reader writes.
&ldquo;For decades, Americans have been told that free trade, capitalism and democracy work for everyone. They'll get ahead if they work hard, create value and play by the rules. But that's not what happened. Instead, wealth and power concentrate at the top, while people are left working harder every day just to stay in place.
&ldquo;The system isn't broken &mdash; it's designed this way. Economic stratification isn't a bug; it's a feature. Tariffs and trade deals, policies and regulations, aren't about fairness or efficiency; they're about control. Governments don't create value; they allocate it, deciding who wins and who loses. For the last 60 years, those decisions have overwhelmingly benefited corporate elites, financial speculators and political insiders.
&ldquo;As a result, America has shifted from a nation of 'producers' to a nation of 'consumers.' The drive to create, build and innovate has been replaced with dependency on wages, debt and cheap imports. And when people feel powerless to change their circumstances, they either tune out, fight each other or look for false saviors (King Trump).
&ldquo;The partisan fight of left versus right is a deliberate distraction. What the elites work so painstakingly to conceal is the long game of the takers pillaging the makers. The problem isn't capitalism or socialism &mdash; it's a system that rewards rent-seekers over value creators. The game will remain rigged until people realize the truth and act to break the rent-seekers&rsquo; dominance.
&ldquo;The real question is: What will it take to play a different game?
&ldquo;It looks like we're going to find out.&rdquo;
<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-5-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-5_2x-new.png 2x" alt="5" width="37" />Mailbag II: Tariffs and Mind-Altering Substances
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />&ldquo;I would like to take a philosophical break from the usual banter about tariffs,&rdquo; writes another &mdash; &ldquo;particularly one of the main espoused reasons for them, &lsquo;the stopping of fentanyl into the U.S.&rsquo;
&ldquo;From my perspective I somewhat reckon this back to the Prohibition period when alcohol was made illegal in the U.S. I don't recall reading from the history of that period where the U.S. placed blame on other countries for the alcohol being smuggled into our country &mdash; then placing tariffs on them to get it to stop being sent from overseas to the U.S.
&ldquo;With that I ask why do we blame other countries for the substance abuse problem here?
&ldquo;Should it not be our problem to find the &lsquo;why&rsquo; for the rampant substance abuse here and &lsquo;fix that&rsquo;? You can call it fentanyl, acid, pot, alcohol, benzodiazepine, hydrocodone or whatever you want &mdash; they are all abused to &lsquo;cover up something.&rsquo;
&ldquo;I have read multiple reports that the majority of imported drugs come through major ports of entry and not through very rural, out-of-the-way places along the border. Should it not be our problem to have better security at our borders to find, confiscate and eliminate the illegal drugs?
&ldquo;It is also relevant to mention that these same drugs are illegally made right here in the U.S. So again why is it &lsquo;other countries&rsquo; problem&rsquo; and in trying to force them to increase border security we place additional costs on the everyday working folk of the U.S. (for it is those people who will suffer and face the dilemma of having to choose what to buy and what to do without)?
&ldquo;I doubt very seriously the upper 1% will be cutting back on their household spending due to the increased cost of basic goods and it seems these are more and more the people making the country's decisions.
&ldquo;I've been a reader of the &lsquo;5&rsquo; for a number of years enjoying the perspective/opinions of the editors as well as some of the customers.&rdquo;
Dave responds: &ldquo;As drug warriors have been discovering since Congress banned nonmedical use of opiates and cocaine in 1914,&rdquo; writes Jacob Sullum at Reason, &ldquo;prohibition creates a strong financial incentive to evade any obstacles that the government manages to erect between suppliers and consumers.
&ldquo;That problem is compounded in the case of fentanyl, which is cheap to produce and highly potent, making it possible to smuggle large numbers of doses in small packages.&rdquo;
Sullum spotlights a 2018 report from the American Enterprise Institute &mdash; which concluded that even if Washington somehow stopped all direct fentanyl sales to the U.S., &ldquo;enterprising dealers [would] simply sell into nations such as the U.K., repackage the product and then resell it into the U.S."
So yes, you&rsquo;re right. As the military analyst William Schryver tweets, &ldquo;Fentanyl use in the United States is an indicator of socioeconomic despair and spiritual malaise.&rdquo;
But it&rsquo;s a lot easier for politicians to blame foreign devils, no?
Best regards,
<img class="aligncenter" src="https://media.paradigmpressgroup.com/signatures/dave-gonigam.png" alt="Dave Gonigam" width="250px" align="left" />
Dave Gonigam Managing editor, Paradigm Pressroom's 5 Bullets

shutterstock 1900868446

The trade war with Mexico is on hold. A shooting war, however, might be imminent.

The Coming Border War

<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-1-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-1_2x-new.png 2x" alt="1" width="37" />What&rsquo;s a Tariff Anyway?
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> With tariffs turning the markets upside down this morning, perhaps it&rsquo;s a good time to step back and think about the basic things.
Like, what is a tariff anyway?
Maybe you know &mdash; or think you know &mdash; but if survey data is to be believed, more than half of your fellow Americans do not.
The market research firm Ipsos polled nearly 1,100 Americans in December. Courtesy of Statista, here are the results.
<img class="aligncenter" src="https://images.ctfassets.net/vha3zb1lo47k/4yXJNnbJwWc7pbg8Vc9Ia6/1c63e5eb31546957327ae8049c1d0281/Tariff.png" alt="Tariff" width="540px" />
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> There&rsquo;s a problem, though: Even the &ldquo;correct&rdquo; answer as pinpointed by the pollsters is loaded with an assumption.
Yes, the &ldquo;importer&rdquo; pays the tariff up-front. But then what? Well, the importer might choose to eat some of that cost. But the rest gets passed along to the wholesaler&hellip; and then the retailer&hellip; and ultimately the consumer.
Saying that tariffs are paid by &ldquo;importers&rdquo; is the same sort of misdirection Democrats employ when they say that corporate income taxes are paid by &ldquo;rich, greedy corporations.&rdquo;
No, it&rsquo;s a cost that &mdash; like any other cost &mdash; gets passed on down the line.
<img class="aligncenter" src="https://images.ctfassets.net/vha3zb1lo47k/5tyOdLqldJ6R23emeAkAZj/6ac1a4c02bca6811ecf5560541b31b66/RandTweet.png" alt="rand tweet" width="540px" /> <img class="aligncenter" src="https://images.ctfassets.net/vha3zb1lo47k/2ZcpwuBNHMBVyVvICQosSW/6adf6fa030e1676457bd7cfa07ccfe41/JustinTweet.png" alt="justin tweet" width="540px" />
So with that essential background, let&rsquo;s pose a question&hellip;
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> Are you willing to pay a dime a gallon more for gasoline to stop the flow of fentanyl from Canada into the United States?
To be clear, I don&rsquo;t know whether it&rsquo;ll be exactly a dime. No one does. It might be more, it might be less. But that&rsquo;s the essence of the bargain Donald Trump is asking you to make.
Actually, he&rsquo;s not asking: You don&rsquo;t have a choice. Tariffs are a tax, after all, even if you don&rsquo;t pay them directly.
He didn&rsquo;t put it in such concrete terms yesterday. He said only, &ldquo;THIS WILL BE THE GOLDEN AGE OF AMERICA! WILL THERE BE SOME PAIN? YES, MAYBE (AND MAYBE NOT!).&rdquo;
As you might be aware, effective tomorrow goods from Canada and Mexico will be subject to a new 25% tariff, while goods from China will be subject to a new 10% tariff (above and beyond the existing ones).
It seems his main beef with Canada is a failure &ldquo;to devote sufficient attention and resources or meaningfully coordinate with United States law enforcement partners to effectively stem the tide of illicit drugs.&rdquo;
There are exemptions to the tariffs. Most notably, Canadian oil will be taxed at 10%, not 25%.
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> &ldquo;Setting a lower tariff for such energy products is Trump telling on himself,&rdquo; writes Liz Wolfe at Reason this morning &mdash; &ldquo;admitting that tariffs will in fact raise prices.&rdquo;
Hmmm&hellip; The lower energy tariff and the &ldquo;PAIN&rdquo; comment is vaguely reminiscent of events three years ago.
When Vladimir Putin rose to Joe Biden&rsquo;s bait and invaded Ukraine, Biden tried to brace everyday Americans for higher energy prices with warnings like, &ldquo;Defending freedom will have costs for us.&rdquo;
The argument didn&rsquo;t land well. In the end, Biden chose to evade those costs. He offset rising gasoline prices by draining the U.S. Strategic Petroleum Reserve at a pace no president did before. With the reserve still at a 41-year low, that option is foreclosed to Trump.
So much for the big picture. Let&rsquo;s move on to the market impact&hellip;
<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-2-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-2_2x-new.png 2x" alt="2" width="37" />Uncertainty
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> As the morning wears on, it seems Washington and Mexico City have come to terms to forestall the Mexico-targeted tariffs. But for how long?
Trump says he will &ldquo;immediately pause&rdquo; the tariffs for one month after Mexican president Claudia Sheinbaum announced a deployment of troops to the Mexico-U.S. border.
Where this leaves business owners like Nicolas Palazzi, we don&rsquo;t know. He&rsquo;s the founder of a wine-and-spirits distributor in Brooklyn employing 21 people. About 20% of his imports come from Mexico.
&ldquo;Is it for a day, is it a political flex or is it something that will last for four years?&rdquo; he asked a BBC reporter ahead of the initial tariff announcement Saturday.
He says his small Mexican suppliers might not survive a prolonged spate of tariffs. &ldquo;Can you really plan? No.&rdquo;
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />That same uncertainty extends to the markets writ large &mdash; steep swings as the new week began, now being tempered by the Mexican truce, however temporary.
What was a 600-point drop in the Dow Industrials has now been trimmed to less than 150 as we check our screens. That said, the S&amp;P 500 has nonetheless given up the 6,000 level&hellip; and the Nasdaq is still down nearly 1%.
A rally in the U.S. dollar index past 110 has now turned into a reversal on the day, below 109.
Crude rallied hard when trading opened for a new week Sunday night, but now most of those gains have evaporated, a barrel of West Texas intermediate up less than a quarter at $72.76. And a steep drop in energy stocks has turned into a rally.
Gold is in record territory at $2,818, silver up as well to $31.57.
Crypto, however, is a hot mess. Bitcoin sits below $99,000 and Ethereum took a wicked spill of over 25%. From lows beneath $2,400, ETH has recovered to nearly $2,700 now.
<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-3-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-3_2x-new.png 2x" alt="3" width="37" />A Post-DeepSeek Shopping List
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />With the benefit of a week&rsquo;s hindsight, the winners and losers from <a href="https://paradigmpressroom.com/post/decoding-deepseek">the DeepSeek story</a> are coming into view &mdash; and the trading possibilities are attractive indeed.
For one thing, Paradigm trading pro Enrique Abeyta says it was only the AI-related stocks that took the initial hit. &ldquo;Monday was one of the biggest down days in the stock market in recent history. But in the S&amp;P 500, four stocks went UP for every one went down.&rdquo;
By the end of last week, the S&amp;P logged a 2.7% gain for the month of January. All else being equal, a strong January bodes well for the rest of the year. (Only twice in the last two decades was this not true &mdash; 2018 and 2011.)
Meanwhile, the stocks that did take a hit comprise &ldquo;<a href="https://media.paradigmpressgroup.com/enlarged-images/ttr-issue-img-02-03-25-img-2.png?vid2=f7584bb8d0f8b4ef03ea4a2a79cb9ffebd5601637dfb4b221b21055bfe10aa56fb9565c7166c12ea93687031263ed97489aead8f437e4ddd1cfcbcd5e6a6bb06&amp;utm_campaign=TTR_ISSUE_02.03.25&amp;utm_source=Iterable&amp;itbl_templateId=16364831&amp;itbl_campaignId=12483930&amp;utm_medium=Email">a very interesting list</a> of stocks to buy,&rdquo; Enrique ventures.
&ldquo;Almost all of these stocks have had strong charts with supportive technical characteristics. They also have had good earnings momentum. Plus, the stocks still managed to stay above their long-term 200-day moving average despite the sell-off.&rdquo;
An example he cites in today&rsquo;s edition of our sister e-letter Truth &amp; Trends &mdash; the data center infrastructure firm Vertiv Holdings (VRT). The share price bounced off its moving average and analysts&rsquo; earnings estimates keep rising.
&ldquo;Rising estimates are the single best driver of stock prices in the intermediate term,&rdquo; he reminds us. &ldquo;When you see estimates going up, the stock almost always follows.&rdquo;
<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-4-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-4_2x-new.png 2x" alt="4" width="37" />Follow-Ups
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />For the record: The &ldquo;Doomsday Clock&rdquo; is closer to midnight than it&rsquo;s ever been in its 78-year history.
On Friday the Bulletin of the Atomic Scientists issued its annual update to the clock that symbolizes the risk of nuclear Armageddon. They inched it forward one second &mdash; 89 seconds to midnight.
&ldquo;The war in Ukraine, now in its third year, looms over the world; the conflict could become nuclear at any moment because of a rash decision or through accident or miscalculation,&rdquo; says the Bulletin&rsquo;s statement. &ldquo;The nuclear arms control process is collapsing, and high-level contacts among nuclear powers are totally inadequate given the danger at hand.&rdquo;
This is true; the back-and-forth that Washington and Moscow implemented after the Cuban Missile Crisis in 1962, and continued for the duration of the Cold War? It&rsquo;s nowhere to be found now.
A year ago, we <a href="https://paradigmpressroom.com/post/90-seconds-to-armageddon">devoted</a> all 5 of our Bullets to the Doomsday Clock and why it&rsquo;s even closer to midnight now than it was back in the early &rsquo;60s. It&rsquo;s relevant to our financial beat in the sense that if nuclear war breaks out&hellip; there won&rsquo;t be any markets or economy for us to talk about.
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> Thursday is the deadline by which the Trump administration is supposed to outline a plan to release the remaining redacted JFK assassination files.
On Jan. 22, Trump ordered the &ldquo;full and complete release&rdquo; of all the files. However, the order has loopholes big enough to accommodate JFK&rsquo;s 1961 Lincoln Continental limo.
Attorney Lawrence Schnapf sued the Biden administration in 2022 when Biden failed to release the records as required by law. (Indeed, Biden handed control of them to the CIA.) He&rsquo;s dubious about Trump&rsquo;s commitment to follow through.
&ldquo;The president could have simply directed the archivist to remove all redactions in the assassination records in its possession and make them available to the American people,&rdquo; he writes at the JFK Facts Substack. Instead, the language of the order opens the way &ldquo;for agencies who have been resisting disclosure for over six decades to demand further postponements.&rdquo;
It&rsquo;s going to take public pressure to get full disclosure. With that in mind, two Republicans and one Democrat in the U.S. House are circulating <a href="https://cohen.house.gov/media-center/press-releases/congressmen-cohen-schweikert-and-burchett-write-trump-seeking-release?utm_source=substack&amp;utm_medium=email">a &ldquo;Dear Colleague&rdquo; letter</a> for other congressmembers to sign.
Seldom do I think &ldquo;call your congressman&rdquo; is worthwhile advice. But perhaps it might make a difference in this case. (You can find your rep by zip code <a href="https://www.house.gov/representatives/find-your-representative">at this link</a>.)
As I wrote to mark the 60th anniversary&hellip; the JFK assassination was the moment when Americans&rsquo; trust in &ldquo;the system&rdquo; first began to erode, and the post-WWII sense that life would keep getting better and better took its first major blow.
If we want a return to the real prosperity of that era, shared by the masses&hellip; and not the fake financialized prosperity enjoyed only by a few&hellip; perhaps it can start with full JFK disclosure.
<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-5-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-5_2x-new.png 2x" alt="5" width="37" />From a Skeptical Reader&hellip;
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> &ldquo;I am skeptical. Very skeptical,&rdquo; writes a reader who nonetheless overcame his skepticism <a href="https://pro.paradigm-press.info/m/2408662">while watching The Prophecy, featuring Paradigm&rsquo;s newest editor Mason Sexton</a> &mdash; and he subscribed to Mason&rsquo;s one-of-a-kind trading service,The Map.
&ldquo;I'm not a mystic or spiritualist. I do however agree with the premise of market moods (markets made up of humans) that can be affected by cosmic events.
&ldquo;So I bought it.
&ldquo;Why? Two main reasons:
<ol>
<li>&ldquo;I want to understand shorting better, as I want to play the rise and fall of markets. Very intriguing.</li>
<li>&ldquo;Results are results. If I can make back what I spent on the program it's worth it.</li>
</ol>
&ldquo;It's funny because Paradigm always has this showmanship thing, and it's clear to me you are uncomfortable with this one. And that could be what pushed me over the edge.
&ldquo;Let's see how it goes! I'm here for the ride.&rdquo;
Dave responds: Glad you took the plunge.
Over the last few days as I&rsquo;ve been introducing Mason to readers, I&rsquo;ve given zero emphasis to the more, ummm, esoteric aspects of his strategy. I figured it&rsquo;s just better to let Mason <a href="https://pro.paradigm-press.info/m/2408662">lay out that part in his own words</a>.
But it&rsquo;s not altogether new territory for me. One sleepy summer day several years ago, I mused at length in these virtual pages about the link between the 11-year sunspot cycle and &ldquo;mass excitability&rdquo; in society and the markets.
My tentative conclusion was that while the link was compelling, it didn&rsquo;t translate to anything you could do to consistently make money in the markets.
But I didn&rsquo;t know about Mason at the time; back then distribution of his research was limited only to the highest of high-end clients.
Across a 45-year career, he seems to have figured it out &mdash; albeit with some even more &ldquo;mystical&rdquo; elements thrown in the mix.
That&rsquo;s all I&rsquo;ll say about it now &mdash; except that the results can&rsquo;t be argued with. <a href="https://pro.paradigm-press.info/m/2408662">Go ahead and watch Mason&rsquo;s presentation and decide for yourself</a>.
Best regards,
<img class="aligncenter" src="https://media.paradigmpressgroup.com/signatures/dave-gonigam.png" alt="Dave Gonigam" width="250px" align="left" />
Dave Gonigam Managing editor, Paradigm Pressroom's 5 Bullets

shutterstock 1155353293

With tariffs turning the markets upside down this morning, perhaps it’s a good time to step back and think about the basic things.

